State Street Global Advisors (SSGA) has launched the State Street Multi-Factor Global Equity Fund., which is aimed at helping investors achieve greater diversification and increased risk-adjusted returns over the long term.
The launch represents one of the industry’s first UCITS advanced beta multi-factor funds combining three factors: low valuation, low volatility and high quality. All three strategies 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 per cent in early 2014 alone, and over 280 percent in the last 5 years*. The advanced beta market today is driven by equities with more than 82 per cent of total advanced beta assets invested in equity advanced beta*. The new fund directly responds to growing investor interest in advanced beta, particularly in the equity arena.
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 State Street Multi-Factor Global Equity Fund was created to provide exactly this.’
The State Street Multi-Factor Global Equity Fund is the fifth advanced beta UCITS fund on SSGA’s Luxembourg platform alongside:
• SSGA Global Managed Volatility Equity Fund
• SSGA Europe Managed Volatility Equity Fund
• SSGA US Issuer Scored Corporate Bond Index Fund
• SSGA Euro Issuer Scored Corporate Bond Index Fund