State Street Global Advisers

State Street Global Advisers to manage new Foster Denovo funds

Foster Denovo Group Limited today announces the successful transition of two of its Sequel OEIC funds to a world equity sector allocation mandate and a real assets mandate. These two “smart diversification” funds are now actively managed by State Street Global Advisers, one of the world’s largest institutional asset managers.

The WS Sequel World Equity Fund is an actively managed fund that aims to outperform world equities by holding an overweight position in those world equity sectors where the managers see the greatest return potential, relative to a sector-neutral approach. This view will change over the market cycle, and provides a differentiated, smart diversification approach to world equity diversification, by eliminating sector concentrations that arise from a traditional market-cap weighted approach. “Sector rotation strategies” are a popular and established investment process, and the fund is thought to be the first of its kind in the UK to formalise this approach within a single fund. State Street has been a pioneer in the Sector ETF arena and the fund is powered by State Street’s active allocation approach primarily using London-listed SPDR World Equity Sector ETFs. To ensure fair evaluation of the strategy, the fund is benchmarked against the Elston World Equity Sector Equal Weight Index: an index that measures the performance of world equities, but where each sector exposure has an equal weight.

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