State Street Global Advisors, the asset management business of State Street Corporation has launched its Dynamic Diversified Fund within its flagship Managed Pension Fund. The new fund is designed for pension schemes to actively invest across traditional asset classes such as equities or bonds as well as alternatives such as commodities, real estate and infrastructure.
State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), announces the launch of its Dynamic Diversified Fund within its flagship Managed Pension Fund. The new fund is designed for pension schemes to actively invest across traditional asset classes such as equities or bonds as well as alternatives such as commodities, real estate and infrastructure.
Market volatility has driven an increased client demand for active tactical allocation rather than the traditional approach of holding a static asset allocation. The fund’s dynamic tactical asset allocation will be driven by SSgA’s innovative Market Regime Indicator (MRI). The MRI is a proprietary model that converts market signals into an indication of market sentiment.
Susan Raynes, head of SSgA UK, Middle East and Africa, commented, ‘The new fund allows clients the potential to participate in rising markets and manage their asset allocation whilst attempting to limit the risk of significant drawdowns when markets fall. The dynamic asset allocation model is designed to deliver a smoother investment path by switching into the right asset at the right time. The fund also benefits from a sophisticated risk control mechanism in an effort to guard against downside risks.”
Andrew Soper, head of UK and Ireland portfolio management, Investment Solutions, SSgA, commented, “Financial markets have changed. Previously safe asset classes are no longer dependable, whilst historically high performing asset classes have performed poorly. There is broad recognition that a static asset allocation is not optimal under all market conditions. Our high conviction strategy will aim to divest completely from some asset classes if necessary or rapidly switch into assets when the time is right.
“Given volatility in the markets, we’ve built in an additional safety net in effort to help counteract unforeseeable downside event risks. With systematic protection to cover higher allocation to risky assets when in a low-risk regime, we’re focusing on the actual asset prospects rather than peers, benchmarks or trends.”
The new funds will be managed by SSgA’s Investment Solutions Group (ISG), which has more than 50 investment professionals based in global investment centres offering perspectives on every region, issue and client type.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset management. The firm is relied on by sophisticated investors worldwide for its disciplined investment process, powerful global investment platform and access to every major asset class, capitalization range and style. SSgA is the asset management business of State Street Corporation, one of the world’s leading providers of financial services to institutional investors.
State Street Global Advisors Limited. Authorised and regulated by the Financial Services Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ Telephone: 020 3395 6000
Facsimile: 020 3395 6350 Web: www.ssga.com
This communication is directed at professional clients (this included eligible counterparties as defined by the Financial Services Authority who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.
Investing involves risk including the risk of loss of principle.
Asset allocation is a method of diversification which positions assets among major investment categories. Asset allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect from loss.
Investing in the Managed Pension Fund is effected by means of an insurance policy written by Managed Pension Funds Limited, a member of the State Street group of companies. This document should not be construed as an invitation or inducement to engage in investment activity. The Managed Pension Fund is available to pension schemes (including overseas schemes) registered with HM Revenue and Customs for the purposes of Chapter 2 of Part IV of the Finance Act 2004. This document should therefore only be circulated to the Trustees of such schemes and their advisers who are deemed to be professional persons (this includes professional clients and eligible counterparties as defined by the Financial Services Authority). It should not be circulated to or relied upon by any other persons. In particular scheme members should consult with their employer or scheme trustee. Please note that neither State Street Global Advisors Limited or Managed Pension Funds Limited offer actuarial services and any investment service undertaken by those firms with an objective of matching projected pension fund liabilities does not include, or take responsibility for, the calculation of projected liabilities. Any illustrations exclude the impact of fees, and actual investment returns may differ from projected cashflows, these projected cashflows are not projections of any future benefit payable under a specific policy.
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