UK - State Street Global Advisors (SSgA) has won a £165m global equity 130/30 mandate from the Asda Group Pension Fund, for Global Alpha Edge.
Asda pensions manager Steve Jones said: “The appeal of the product was the opportunity for enhanced alpha relative to long-only mandates through short positions whilst having a cap on total liability.”
Global Alpha Edge is one of SSgA’s first products to incorporate a 130/30 investment methodology that is also UCITS III-compliant. It limits market exposure to 100%, the level of shorting improves the portfolio’s efficiency by providing a better risk-return ratio. The strategy aims to achieve consistent outperformance of 4% to 5% over a three-year market cycle. SSgA’s said the strategy maintains a 4% to 5% tracking error against its benchmark, the MSCI World Index.
SSgA senior managing director, UK Kanesh Lakhani said: “UK pension funds continue to move toward global equity strategies and are currently focusing on increasing the alpha from their equity portfolios efficiently within a risk budgeting framework.”
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.
Pensions and Benefits UK 2019 is delighted to announce the launch of our programme for this year, celebrating 20 years of bringing you the latest updates on all things pensions and employee benefits. Register for your place today!
PP has compiled a list of what to watch out for over the coming months.
Willis Towers Watson's LifeSight is the first master trust to be granted authorisation by The Pensions Regulator (TPR).