State Street runs up the score in 130/30 March Madness
Mar 26th, 2007 | Filed under: 130/30There has been a flurry of activity in the 130/30 space so far this month that seems to rival the hoopla over US college basketball. No sooner had Merrill Lynch released its report on 130/30 than State Street landed a 165 million GBP 130/30 mandate from Britain’s Asda Group. With some industry insiders saying the current size of the US 130/30 market is US$50b AUM, that would be nearly 0.7% overnight growth had it happened on that side of the pond.
State Street has been an ardent advocate of 130/30 for some time. This enthusiasm culminated in the recent launch of a 130/30 strategy that is compliant with European pension regulations (although SSgA’s French subsidiary seems to have done a “soft launch” back in December of the same strategy and now manages around 450 million EUR using it). According to SSgA, its ”Global Alpha Edge” is only the first of several 130/30 products the firm plans to launch in 2007. Apparently, the France-listed SSgA “North American Edge” is the latest such entry (launched: March 15, 2007 according to SSgA’s French website).
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