State Street fund aims to time the market

Pension nest egg 410State Street Global Advisors has launched a multi-asset fund for pension schemes that can switch its allocation between asset classes in a bid to increase returns.

Managers of the Dynamic Diversified Fund can invest in equities, bonds and alternatives such as property, commodities and infrastructure. The managers will alter their allocations to these asset classes in response to market movements.

“The dynamic asset allocation model is designed to deliver a smoother investment path by switching into the right asset at the right time,” says Susan Raynes, head of State Street Global Advisors in the UK, Middle East and Africa.

Timing the market is notoriously difficult, but a statement by State Street says the firm hopes to achieve good results by employing a proprietary model that converts market signals into an indication of market sentiment.

The fund will be managed by the firm's Investment Solutions Group, which includes more than 50 professionals in different regions. The fund is available to pension schemes that are invested in the company's Managed Pension Fund.

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