On the go: State Street Global Advisors is making payments to pension schemes, including PensionBee, after an error made by FTSE Russell in the composition of one of its indices affected the returns of several funds offered by the asset manager.
According to a market announcement on Thursday, PensionBee will be receiving a payment of approximately £724,000 from SSGA by July 2.
The payment relates to an error made by FTSE Russell in the composition of the FTSE All-Share ex Controversies, ex CW Index for the period between November 18 2020 and February 5 2021, PensionBee stated.
The error affected numerous funds offered by the asset manager to its clients, including one fund offered to PensionBee, it added.
SSGA declined to comment on how many clients were affected by this error, or what is the current value of assets under management in the affected funds.
An asset manager spokesperson said: “SSGA is not responsible for compensating investors for index calculation errors.
“However, given the value we place on our investor business relationships, SSGA has decided in this particular instance to make payments to impacted investors in respect of the reduction in fund investment return suffered by them as a result of the error.”
FTSE Russel has been approached for comment.
PensionBee stated that it had “already taken steps to ensure that its own customers were not adversely affected by FTSE Russell's error”, and that in March it paid approximately £664,000 to the balances of the affected customers.
“As such, PensionBee’s customers did not suffer any financial loss despite this error by FTSE Russell,” it added.
PensionBee intends to invest the payment from SSGA in its ongoing growth and product development activities, it concluded.
