State Street launches new long/short strategy

Date: Monday, July 9, 2007
Author: Craig Sebastiano, Benefits Canada

State Street Global Advisors is launching its Canadian Index Plus Edge strategy, designed to provide a bridge between low risk/low value-added passive portfolios and high risk/high-value added active strategies.

The Canadian Index Plus Edge strategy takes short positions up to 10 percent, which in turn fund an additional 10% of long positions, thereby maintaining net market exposure at 100%.

It aims to outperform the S&P/TSX Composite Index’s annual return by 2%.

“The creation of Edge strategies is a global strategic initiative and we are excited to add this new Canadian strategy to our existing offerings,” says Gregory Chrispin, president and managing director of SSgA in Canada.

Canadian Index Plus Edge further extends SSgA’s suite of investment strategies that use its “Edge” methodology, an extension strategy also widely known as “130/30,” that seeks to provide the best of long-only and long/short approaches.