UK - Gallaher Pensions has appointed State Street Global Advisors (SSgA) to manage a £50m active UK equity mandate.
Following a manager reshuffle, the pension fund split the original UK equity mandate, previously held by an undisclosed manager, between SSgA, Majedie Asset Management and JP Morgan Asset Management (JPMAM).
SSgA and JPMAM were both allocated £50m briefs, while Majedie was allocated a £25m brief.
Julian Rose, pensions manager for the £860m Gallaher fund, said: “We selected SSgA to manage this mandate based on its strong quantitative processes and experienced professionals.”
SSgA will employ their UK alpha strategy, a quantitative, risk-controlled security selection process, to target performance of 2% over the FTSE All-Share Index.
Kanesh Lakhani, head of marketing and consultant relations at SSgA, said: “In a world of challenging stock markets and lower expected equity returns, investors are seeking out performance while maintaining risk controls.
“SSgA’s active equity strategies aim to deliver added value at relatively low levels of volatility. Our rigorous stock selection process uses a diverse range of factors and seeks to provide clients with consistent value-added service.”
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