Clothworkers opt for enhanced indexing
State Street Global Advisors (SSGA) says it has won a mandate from the Clothworkers’ Co, a London ‘livery company’, to manage a $20m enhanced indexation portfolio.
Andrew Blessley, the clerk to the Clothworkers’ Co, says: “Clothworkers’ is a long term investor and we believe that an enhanced index approach best suits our investment strategy, as well as our philosophy and culture.”
Blessley adds: “State Street’s long track record and experience in enhanced indexing is impressive and made them the clear choice for this mandate.”
The Clothworkers’ Co was formed in 1528 as a guild for the textile industry and now focuses on charitable work.
SSGA’s marketing director Kanesh Lakhani says: “Enhanced indexing offers the best of passive and active investment strategies and there is now a growing recognition of the merits of this investment style.”
SSGA said in November that it now has $12bn under management in enhanced index funds, up from $2bn a year ago. Enhanced indexing aims to provide incremental investment returns by making lots of small bets at the level of an individual stock.
SSGA has launched four enhanced equity index pooled strategies for UK clients covering the UK, Europe, North America and Pacific.