SSGA combines betas for fund launch

State Street Global Advisors (SSGA) has launched what it says is one of the first Ucits funds to combine three “advanced beta” factors.

The State Street Multi-Factor Global Equity Fund combines the three factors of low valuation, low volatility and high quality. SSGA says these factors demonstrate increased risk-adjusted returns over a long-term investment horizon when compared to the MSCI World index.

The combination of factors provides an investment solution for investors looking to capture the performance outcomes of these attributes within a transparent, rules-based investment approach.

Advanced beta funds have seen significant growth in Europe over the last few years, with assets under management growing by over 19% in early 2014 alone, SSGA says, and over 280% in the last five years.

Ana Harris, advanced beta portfolio strategist at SSGA, says: “After the first generation of single factor funds, we are seeing an increasing need from investors for an approach that combines different factors in a transparent way. Investors want exposure to a number of factors through one cost-effective solution.”

The latest fund is the fifth advanced beta Ucits fund on SSGA’s Luxembourg platform. Others include managed volatility funds.

©2014 funds europe

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