EUROPE - Northern Trust Global Investments (NTGI) has launched its first pooled enhanced equity index fund in Europe targeting UK and European institutional investors.
The fund invests in North American equities, with the MSCI North America Index as its benchmark.
NTGI said it had received seed capital for the fund from a Danish pension fund which has invested about e100m in the new fund.
“We are seeing increasing demand from UK and European institutional investors for enhanced indexation strategies as, for example, they seek to make their core assets work harder,” said Rodney Fernandes, NTGI’s head of quantitative management in Europe.
The fund aims to outperform the MSCI index by between 75 and 125 basis points.
“We believe this is the optimum level because in our view, the aim of an enhanced index portfolio is to generate modest and consistent outperformance through a broad and diversified set of opportunities within a rigorous and disciplined risk-controlled framework,” Fernandes added.
The fund is open to institutional investors with a minimum initial investment of e5m.
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