Designed primarily for pension schemes, the fund will invest across equities, bonds, commodities, real estate and infrastructure. Tactical asset allocation will be driven by the firm’s proprietary Market Regime Indicator (MRI) that converts market signals into an indication of market sentiment.
The high-conviction strategy will aim to divest completely from some asset classes if necessary or rapidly switch into assets when the managers deem the time is right.
Susan Raynes, head of State Street Global Advisors UK, Middle East and Africa, said: “The new fund allows clients the potential to participate in rising markets and manage their asset allocation whilst attempting to limit the risk of significant drawdowns when markets fall.
“The dynamic asset allocation model is designed to deliver a smoother investment path by switching into the right asset at the right time. The fund also benefits from a sophisticated risk control mechanism in an effort to guard against downside risks.”
