The pension trust of General Electric (GE) has made a significant investment in a new exchange-traded fund (ETF) called Simplify Market Neutral Equity Long/Short ETF (EQLS). According to a filing with the Securities and Exchange Commission, the trust ended the third quarter with 4,171,885 shares of the ETF, valued at $103.5 million. This investment marks a notable move for GE’s pension trust, as it had not owned any shares of the ETF at the end of the previous quarter.
A Strategic Investment
The Simplify Market Neutral Equity Long/Short ETF employs a market-neutral strategy, aiming to generate profits in both rising and falling equity markets. The ETF achieves this by investing in baskets of global equity securities primarily through total return swaps, which provide the returns of a basket of common stocks, whether long or short.
During the third quarter, the ETF delivered a cumulative total return of 0.7%. This result outperformed its benchmark, the MSCI World Index, which experienced a loss of 3.5% during the same period. Additionally, the ETF fared better than the S&P 500 index, which saw a 3.6% decrease in the third quarter.
GE Pension Trust and Its Legacy
It is worth noting that GE’s pension trust is a legacy operation that has been closed to new entrants since January 1, 2012. However, despite its legacy status, the trust continues to make strategic investment decisions in pursuit of maximizing returns.