Meaghan Victor

State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT) has announced the launch of a new suite of Model Portfolios powered by exchange-traded funds (ETFs) for Australian investors.

The ETF Models, managed by State Street Global Advisors Investment Solutions Group, will be made available to financial and dealer groups via a number of platform providers in 2019.

“Our new suite of ETF Model Portfolios will provide financial advisers with convenient, cost effective access to State Street’s institutional asset management expertise.” said Meaghan Victor, head of SPDR ETFs, Australia and Singapore.

“And in today’s environment, we believe the transparent and open architecture nature of our models, will further support advisers to achieve the best outcomes for their clients.”

State Street’s ETF Model Portfolios are built on a disciplined risk-focused quantitative process that incorporates our asset class, risk and correlation forecasts.

The new suite of ETF Model Portfolios are founded with an open architecture investment structure, meaning that ETFs from all providers have been considered and selected to ensure portfolio investment selection is not limited by sector, asset class or product issuer.

The new models, investing in both State Street’s SPDR and third-party exchange traded funds, include:

• State Street Risk-Based ETF Model Portfolios: consists of three risk-based ETF model portfolios (moderate, balanced and growth) aimed at pursuing optimal capital efficiency over the long-term by investing in multiple ETFs representing asset classes such as equities, including multi-factor smart beta exposures, and investment grade debt securities.
• State Street Income ETF Model Portfolio: seeks to provide exposure to income and yield-generating investments by investing in multiple ETFs across asset classes, such as high dividend domestic and international equities, investment grade and high yield debt securities.

The ETF Model Portfolios are designed, built and managed by State Street Global Advisors’ Investment Solutions Group, a team established over thirty years ago and with more than US$266.93 billion in assets under management and assets under advisory/consulting.^[1][2]

“Our ETF Model Portfolios will take advantage of a wide range of underlying asset classes to provide broadly diversified, global portfolios with a time tested, asset allocation process,” said Dan Farley, chief investment officer for State Street Global Advisors Investment Solutions Group.

“In today’s low yield and competitive investment environment, we look forward to helping financial advisers in Australia benefit from State Street’s insights with this new suite of ETF Model Portfolios.”

State Street manages more than US$620 billion in SPDR ETF assets worldwide and is one of the largest ETF providers globally.^[3]

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[1] As of December 31, 2018. Total ISG AUM of US$245.71B excludes Execution Only LDI. Derivatives based exposure management AUM represents the notional value of exposure managed.
[2] As of December 31, 2018. Assets Under Advisory/Consulting of US$21.22B includes mandates for which the firm provides advisory or consulting services supporting an investment management process that does not include the responsibility to arrange or effect the purchase or sale of securities and/or funds. In 2015, ISG revised the AUM and AUAC calculation methodology and account categorisation process.
[3] State Street Global Advisors, Morningstar, as of 31 December 2018.

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