- Brings GE Asset Management (GEAM)
active management, alternatives and OCIO (Outsourced Chief
Investment Officer) capabilities to State Street Global Advisors
(SSGA), a premier industry firm with scale and $2.3 trillion in
assets under management globally
- SSGA to manage assets of the GE
pension plan currently managed by GEAM and assume responsibility
for management of GEAM’s other client assets, subject to client
consents
- An independent fiduciary has
reviewed the transaction and approved SSGA’s engagement to manage
the assets related to the GE pension plan currently managed by
GEAM
- SSGA possesses considerable
experience managing retirement assets and strong fiduciary
expertise, as well as a broad distribution network to support
continued growth of the GEAM platform
- Existing GEAM team is expected to
join the SSGA organization, maintaining continuity in the
transition
- No change to pension benefits
received by GE pension plan participants as a result of the
transaction
- GE to deposit the net sale proceeds
from the transaction into the GE Pension Trust
GE [NYSE:GE] and State Street Corporation [NYSE:STT] today
announced an agreement for State Street to acquire GE Asset
Management (GEAM), GE’s investment management arm, for up to $485
million, subject to adjustments. This announcement follows GE’s
previous announcement in September that it would explore
opportunities to sell GEAM to another leading investment management
firm.
The sale, part of GE’s transformation to focus on its industrial
core, will bring GEAM’s capabilities to State Street Global
Advisors (SSGA), augmenting and enhancing SSGA’s investment
expertise in areas complementary to its existing capabilities,
including active management, as well as in alternative assets and
Outsourced Chief Investment Officer (OCIO) mandates. It is also
expected to increase SSGA’s assets under management by
approximately $100 billion, as it assumes responsibility to manage
the assets related to GE’s primary benefit plans currently managed
by GEAM—including the GE pension plan—in addition to those of
GEAM’s third-party client base, subject to client consents. The
existing GEAM team is expected to join SSGA as part of this
transaction, with the exception of a small number of GEAM employees
who will stay with GE to provide investment oversight of GE’s
primary benefit plans. To provide a smooth transition for clients,
the core investment and relationship management teams serving GE’s
benefit plans and other clients will continue to do so as part of
SSGA following the closing.
“This sale is another example reflecting the attractiveness of
GE’s financial services businesses in the marketplace,” said GE
Chairman and CEO Jeff Immelt. “In addition, it presents a great
opportunity for GE’s primary benefit plans to benefit from the
world-class capabilities of SSGA. Most importantly, SSGA meets all
the criteria GE originally established for the firm that would
acquire GE Asset Management, including considerable experience
managing retirement assets, investment and fiduciary expertise, a
strong performance track record, and scale and distribution
leadership.”
Dmitri Stockton, Chairman, President and CEO of GEAM, said,
“SSGA is another outstanding investment firm with an expanded
distribution network and $2.3 trillion in assets under management.
This transaction will allow our firm to bring its active and
alternative asset management capabilities to an even broader
investor base, and enhance SSGA’s ability to grow its presence in
the pension plan outsourcing segment. GE Asset Management has
extensive, long-term experience in pension plan management and
outsourcing offerings with a more than 80-year heritage as a
provider of these services.”
“As defined benefit plans – both private and public – undergo
change, GEAM’s skills coupled with SSGA’s existing capabilities
will position us well to provide effective solutions and outcomes
to these investors,” said Ron O’Hanley, President and Chief
Executive Officer of SSGA. “GEAM will bring new alternatives
capabilities in direct private equity and real estate to SSGA while
enhancing our existing active fundamental equity, active fixed
income and hedge fund teams. In addition, GEAM’s OCIO and Insurance
platforms significantly strengthen our capabilities in these fast
growing areas.”
An independent fiduciary, Evercore Trust Company, N.A., has
reviewed the transaction and approved SSGA’s engagement to manage
the assets related to the GE pension plan currently managed by
GEAM. GE will retain responsibilities as plan sponsor and fiduciary
for its plans going forward. Net sale proceeds from the transaction
will be deposited into the GE Pension Trust, increasing trust
assets used to pay GE pension plan benefits.
As the transaction proceeds, GEAM will maintain its commitment
to fulfilling all of its obligations to its clients. GEAM and SSGA
expect no impact on their ability to provide strong investment
performance and service to investors through and following the
close of the deal.
The sale, which is expected to close in the third quarter of
this year, will not change the benefits received by participants in
the GE pension plan (or any affiliate pension plan), and does not
change GE’s requirement to meet its pension funding
obligations.
GE is being represented in this transaction by Credit Suisse.
The deal is subject to any and all customary and regulatory
approvals.
GEAM is a wholly owned subsidiary of GE, separate from GE
Capital.
About GE Asset Management
GE Asset Management Incorporated (GEAM) is a global asset
manager with $110 billion in assets under management (as of
December 31, 2015). GEAM and its predecessor organizations have
been managing investments for GE’s U.S. pension and other benefit
plans for over 80 years. In 1988, the firm began offering
investment management products and services to investors outside
GE, and today manages portfolios for more than 100 institutional
clients—including corporate and public retirement plan sponsors,
foundations, endowments, sovereign wealth funds, insurance
companies, and GE affiliates. GEAM also manages portfolios for GE
employees and other individual investors through its mutual fund
platform. Investment offerings cover all major asset classes,
including U.S. and international equities, fixed income and
alternative assets. Assets are invested side-by-side with the
corresponding GE benefit plan portfolios and managed by the same
investment professionals, aligning GEAM’s interests with those of
its clients.
About GE
GE (NYSE: GE) is the world’s Digital Industrial Company,
transforming industry with software-defined machines and solutions
that are connected, responsive and predictive. GE is organized
around a global exchange of knowledge, the "GE Store," through
which each business shares and accesses the same technology,
markets, structure and intellect. Each invention further fuels
innovation and application across our industrial sectors. With
people, services, technology and scale, GE delivers better outcomes
for customers by speaking the language of
industry. www.ge.com
About State Street Corporation
State Street Corporation (NYSE: STT) is the world's leading
provider of financial services to institutional investors including
investment servicing, investment management and investment research
and trading. With $28 trillion in assets under custody and
administration and $2 trillion* in assets under management as of
December 31, 2015, State Street operates globally in more than 100
geographic markets and employs 32,356 worldwide. For more
information, visit State Street's website at
www.statestreet.com.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping our clients, and those who rely on them,
achieve financial security. We partner with many of the world’s
largest, most sophisticated investors and financial intermediaries
to help them reach their goals through a rigorous, research-driven
investment process spanning both indexing and active disciplines.
With trillions* in assets, our scale and global reach offer clients
access to markets, geographies and asset classes, and allow us to
deliver thoughtful insights and innovative solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.24 trillion as of December 31,
2015. AUM reflects approx. $22.0 billion (as of December 31, 2015)
with respect to which State Street Global Markets, LLC (SSGM)
serves as marketing agent; SSGM and State Street Global Advisors
are affiliated.
Caution Concerning Forward-Looking Statements
This document contains "forward-looking statements" – that is,
statements related to future events that by their nature address
matters that are, to different degrees, uncertain. For details on
the uncertainties that may cause our actual future results to be
materially different than those expressed in our forward-looking
statements, see
http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements
as well as our annual reports on Form 10-K and quarterly reports on
Form 10-Q. We do not undertake to update our forward-looking
statements. This document also includes certain forward-looking
projected financial information that is based on current estimates
and forecasts. Actual results could differ materially.
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version on businesswire.com: http://www.businesswire.com/news/home/20160330005563/en/
Media:GE Asset ManagementChris Linehan,
203-708-3193chris.linehan@ge.comorGEDave Lurie,
646-682-5618david.lurie1@ge.comorState StreetCarolyn Cichon,
+1 617 664 8672ccichon@statestreet.com
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