Investors today face increasingly complex investment challenges,
according to State Street Global Advisors (SSgA), the asset
management business of State Street Corporation (NYSE: STT).
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. 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,” said Scott Powers, president and CEO of SSgA. “In this
dynamic market environment, we are evaluating our current
strategies, building on our core business strengths and expanding
into areas that will enable us to effectively deliver tailored
solutions. The end result is an integrated investment approach
focused on helping clients to achieve their objectives.”
Building on Beta
“SSgA is committed to being a leader in core indexing, advanced
beta and ETFs and we believe strongly in the value of passive
exposure,” said Rick Lacaille, executive vice president and chief
investment officer at SSgA. “While we see tremendous potential to
build upon our beta franchise, we also believe in the importance of
active management and the essential role that active and
alternative strategies can play in enhancing portfolio returns
through alpha generation.”
According to research conducted by State Street1, forty-five
percent of asset owners reported that low returns on traditional
assets have increased their organization’s appetite for alternative
investment strategies to meet funding demands. Year-end 2012 AUM
for global alternatives reached record levels of $6.6 trillion,
having grown over the last six years at a rate of over seven times
that of traditional asset classes2.
Aligning Leadership
Further aligning its leadership with the client challenges that
exist today, SSgA is combining core teams in active quantitative
developed and enhanced equity. It is 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. Managed fixed income and cash assets worldwide account
for $19 trillion or 37 percent of total managed assets, benefiting
from trends following the financial crisis3.
“We believe that the boundaries between fixed income disciplines
are blurring and that a broad view is beneficial,” continued
Lacaille. “For instance, it is clear that cash management is moving
away from a traditional money market framework and that optimal
portfolio management now incorporates skills typically associated
with managing longer dated fixed income securities. In addition, we
believe that active quantitative and enhanced equity strategies
operate best as a single discipline and combining them will allow
us to serve clients with deeper perspective and resources."
As part of this approach, SSgA is combining its cash and fixed
income capabilities under the leadership of Steve Meier, CIO head
of cash, who will become CIO of fixed income, currency and cash.
Active quantitative developed and enhanced equity will also be
combined under Ted Gekas, currently head of global enhanced equity,
who will take a new role as CIO and global head of active
quantitative equity. As part of these changes, Ali Lowe, CIO,
global equities, will leave the firm at the end of 2013 after a
transition period. Kevin Anderson, currently CIO and head of fixed
income, will assume the role of head of investments for the Asia
Pacific region based in Hong Kong. He replaces Lochiel Crafter who
was recently appointed as head of the Asia Pacific region,
succeeding Bernard Reilly, who has taken the role of global head of
strategy for SSgA.
“These promotions reflect strong individual and team performance
across strategies and these individuals have spent 15 years on
average at SSgA,” said Lacaille. “Looking ahead, we remain
committed to building upon our talent. Additionally, in 2012, 70
percent of our active quantitative investment strategies beat their
benchmarks4 and our cash business has seen continued inflows during
a time when many of our peers have been losing assets.5”
Enhancing Speed to Market
To maximize the effectiveness of its quantitative research, SSgA
is integrating its Advanced Research Center (ARC) and dedicated IT
support into their respective investment teams. Bringing research
closer to the investment process will accelerate SSgA’s ability to
generate and implement actionable ideas with greater speed and
efficiency in volatile and dynamic markets.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors
worldwide for its disciplined investment process, powerful global
investment platform and access to every major asset class,
capitalization range and style. SSgA is the asset management
business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
1 State Street, “The Asset Owners' Perspective: Evolving
Investment and Operational Models,” December 20122 McKinsey &
Company research. Alternatives include hedge funds, private equity
and investments in real estate, infrastructure and commodities in a
variety of vehicles including limited partnerships, fund of funds,
managed accounts, and increasingly, mutual funds and undertakings
for collective investment in transferable securities, or UCITs3
McKinsey & Company research4 SSgA Finance 12/31/12. Past
performance is not a guarantee of future result.5 iMoneyNet, Inc.,
12/31/2012
CORP-0766
Australia: State Street Global Advisors, Australia, Limited (ABN
42 003 914 225) is the holder of an Australian Financial Services
Licence (AFSL Number 238276). Registered office: Level 17, 420
George Street, Sydney, NSW 2000, Australia Telephone: +612
9240-7600 • Facsimile: +612 9240-7611
Belgium: State Street Global Advisors Belgium, Office Park
Nysdam, 92 Avenue Reine Astrid, B-1310 La Hulpe, Belgium.
Telephone: 32 2 663 2036, Facsimile: 32 2 672 2077. Belgium is a
branch of State Street Global Advisors Limited.
Canada: State Street Global Advisors, Ltd., State Street Global
Advisors, Ltd., 30 Adelaide Street East Suite 500, Toronto, Ontario
M5C 3G6
Dubai: State Street Bank and Trust Company (Representative
Office), Suite 404 4th Floor, Building 4, Emaar Square, Dubai,
United Arab Emirates. Telephone: +971 (0)4-4372800, Facsimile: +971
(0)4-4372818.
France: State Street Global Advisors France. Authorised and
regulated by the Autorité des Marchés Financiers. Registered with
the Register of Commerce and Companies of Nanterre under the number
412 052 680. Registered office: Immeuble Défense Plaza, 23-25 rue
Delarivière-Lefoullon, 92064 Paris La Défense Cedex, France.
Telephone: (+33) 1 44 45 40 00. Facsimile: (+33) 1 44 45 41 92.
Germany: State Street Global Advisors GmbH, Brienner Strasse 59,
D-80333 Munich. Telephone +49 (0)89-55878-400. Facsimile +49
(0)89-55878-440.
Hong Kong: State Street Global Advisors Asia Limited, 68/F, Two
International Finance Centre, 8 Finance Street, Central, Hong Kong
• Telephone: +852 2103-0288 • Facsimile: +852 2103-0200
Japan: State Street Global Advisors, Japan, 9-7-1 Akasaka,
Minato-ku, Tokyo Telephone+813-4530-7380 Financial Instruments
Business Operator, Kanto Local Financial Bureau (Kinsho #345) Japan
Securities Investment Advisers Association, Investment Trust
Association, Japan Securities Dealers' Association
Ireland: State Street Global Advisors Ireland Limited is
regulated by the Central Bank of Ireland. Incorporated and
registered in Ireland at Two Park Place, Upper Hatch Street, Dublin
2. Registered number 145221. Member of the Irish Association of
Investment Managers.
Italy: State Street Global Advisors Ltd., Sede Secondaria di
Milano - Via dei Bossi, 4 20121 Milan, Italy. Telephone: +39 02
32066 100, Facsimile: +39 02 32066 155.
Netherlands: State Street Global Advisors Netherlands, Adam
Smith Building, Thomas Malthusstraat 1-3, 1066 JR Amsterdam,
Netherlands. Telephone: 31 20 7085600, Facsimile 31 20 7085601,
SSgA Netherlands is a branch of State Street Global Advisors
Limited.
Singapore: State Street Global Advisors Singapore Limited, 168,
Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg.
No: 200002719D) • Telephone: +65 6826-7500 • Facsimile: +65
6826-7501
Switzerland: State Street Global Advisors AG, Beethovenstr. 19,
CH-8027 Zurich. Telephone +41 (0)44 245 70 00. Facsimile Fax: +41
(0)44 245 70 16.
United Kingdom: United Kingdom: State Street Global Advisors
Limited. Authorised and regulated by the Financial Conduct
Authority. Registered in England. Registered No. 2509928. VAT No.
5776591 81. Registered office: 20 Churchill Place, Canary Wharf,
London, E14 5HJ. Telephone: 020 3395 6000. Facsimile: 020 3395
6350.
United States: State Street Global Advisors, One Lincoln Street,
Boston, MA 02111-2900
Web: www.ssga.com
© 2013 State Street Corporation - All Rights Reserved
State Street (NYSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Street (NYSE:STT)
Historical Stock Chart
From Jul 2023 to Jul 2024
