DENMARK - The Pensionskassernes Administration (PKA) has awarded a $200m (€151m) active equity mandate to State Street Global Advisors (SSGA). (updates PKA comment)
The awarded mandate will be the third for SSGA with PKA. The investment management arm of State Street is managing an enhanced screened US equity and an active Japanese equity portfolio for PKA.
"We have decided to allocate more funds to the UK," PKA's portfolio manager Nils Ladefoged told IPE. "It is also a step towards being more active in our UK portfolio strategy. So far we did not believe that we could generate very high returns in this area but with the unique technique developed by SSGA we think we can."
For the new mandate SSGA will apply its so-called "Edge" equity strategy which involves using both long and short positions.
"State Street Global Advisors' risk management capabilities and proven experience in managing quantitative portfolios made them a suitable investment manager for our needs," said Michael Nellemann Pedersen, CIO at PKA.
PKA manages eight Danish pension funds, whose 215,000 members are mainly employees in the public social and health sectors and which have a total AUM of DKK114bn (€15.3bn).