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.
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