SSgA launches A$340 million fundamental index fund

Aussie institutions look for beta in a fund that invests in securities with below-average price-to-earnings ratios.

Two Australian institutional investors have seeded a new passively managed trust that trades on company fundamentals and is expected to outperform traditional market capitalisation funds by about 2% a year over the long term.

The trust, run by State Street Global Advisors SSgA, tracks the FTSE GWA index which comprises companies with strong fundamental financial data such as earnings, cash flow and book value. The index is a product created by the UK group Global Wealth Allocations and FTSE...

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