State Street Global Advisors today announced the launch of its Active Canadian Fixed Income strategy, a risk-controlled approach for core fixed income investors seeking to deliver consistent risk-adjusted returns.
The strategy is designed to add steady returns over the Scotia Capital Universe Bond Index by taking active positions across multiple and diverse strategies.
The strategy aims to generate excess annualized returns of 50 to 75 basis points over a rolling four-year period. It will take 75 to 100 basis points of forward-looking active risk to generate an information ratio of greater than 0.8. To achieve its return objectives, the strategy will take diversified positions via multiple alpha levers, including credit, interest rate and global bond strategies.
“Our dynamic portfolio management process combines fundamental, quantitative and technical analysis to capitalize on true market inefficiencies,” said Carl Bang, senior managing director of State Street Global Advisors Ltd. (Canada). “This integrated approach, combined with the depth of our credit research team, sets us apart as a leader in providing core fixed income products to the Canadian institutional marketplace.”
The risk-controlled strategy is managed by a team of professionals with an average of 15 years of experience, bolstered by a team of credit research professionals who follow different sectors and industries within the fixed income market.
The initial investor in State Street’s new active strategy is the Halifax Regional Municipality Pension Plan.
“We were attracted to this strategy because of the opportunity to capture excess returns with moderate risk” said Terri Troy, chief executive officer of Halifax Regional Municipality Pension Plan. “State Street Global Advisors has a proven track record of generating consistent fixed income returns. They clearly understand our investment objectives and have demonstrated an ability to deliver on them.”
State Street Global Advisors, the investment management arm of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style.
State Street launches Active Canadian Fixed Income strategy
Initial investor is the Halifax Regional Municipality Pension Plan
- By: IE Staff
- March 13, 2007 March 13, 2007
- 10:15