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State Street ‘More Committed than Ever to ETFs’


State Street Global Advisors this week announced an internal reorganization designed to help its clients meet their goals in a challenging market. However, the changes don’t alter its strong commitment to exchange traded funds, an executive said.

“Confronted with historically low rates, market uncertainty and the challenge of finding returns amid a complex regulatory environment, investors are demanding new investment approaches and strategies from asset managers,” the asset management business of State Street Corp. (STT) said in a press release. “To help clients navigate these ever-changing market conditions, SSgA is strengthening its capabilities in both active and passive strategies.”

“The markets of today are fundamentally different than those of the past due to the financial crisis and unprecedented monetary intervention, which has impacted investment returns and interest rates,” Scott Power, President and CEO of SSgA, said. “In this dynamic market environment, we are evaluating our current strategies, building on our core business strengths and expanding into areas that will effectively deliver tailored solutions. The end result is an integrated investment approach focused on helping clients to achieve their objectives.” [ETF Investing Strategies Contribute to Their Growing Popularity]

The firm said it is combining core teams in active quantitative developed and enhanced equity. It is also expanding the depth of its fixed income strategies to extend further on the credit spectrum targeting areas such as structured credit, high yield and emerging market debt. SSgA is combining its cash and fixed income capabilities. This move involves some reshuffling of the executive ranks as well.

Finally, SSgA is integrating its Advanced Research Center (ARC) and dedicated IT support into their respective investment teams.

“State Street is more committed than ever to the ETF marketplace,” said Jim Ross, head of State Street’s ETF business. “This announcement is meant only to enhance our core business by meeting additional needs for alternative offerings.” [State Street Files Blind Trust Active ETFs]

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.