US-based State Street Global Advisors, the asset management business of State Street Corporation, has launched a global alternative beta fund, which seeks to approximate the returns of hedge funds as a broad asset class.
The State Street Global Alternative Beta Fund tracks the HFRX Global Hedge Fund Index, which represents a broad range of hedge fund strategies including equity hedge, event driven, macro/commodity trading advisor and relative value arbitrage.
According to a statement, the fund aims to approximate hedge funds’ beta returns driven by various market exposures and approximate the risk-return profile of the asset class through a dynamic, factor-based investment process.
Sacha Chorley, portfolio manager at Quilter Investors, said: “We’re pleased to partner with SSGA to offer our passive fund of fund clients access to the diversification benefits of alternatives. Alternatives are a key component of our portfolio construction, as they complement more traditional risk diversifiers of cash and bonds and have proven to reduce the drawdown risk of multi-asset investments in volatile markets.”
The fund, which is registered in the UK, Ireland, Netherlands, Luxembourg, Sweden, Finland, Norway and Denmark, has been seeded with an initial £123m investment from Quilter Investors.
