BOSTON--(BUSINESS WIRE)--
State Street Global Advisors (SSgA), the investment management business
of State Street Corporation, today announced that it has engaged
investment manager Smith, Graham & Co.Investment Advisors, L.P. (Smith
Graham) to help provide asset management services for the U.S.
Department of the Treasury’s Mortgage-Backed Securities (MBS) Purchase
Program.
As a financial agent of the Treasury, SSgA manages a portfolio of
approximately $180 billion in Government-Sponsored Enterprise (GSE) MBS
issued by Fannie Mae and Freddie Mac. Smith Graham, which is one of the
nation’s largest African-American owned fixed-income investment
managers, will assist with portfolio analysis and reporting. With
demonstrated expertise in managing MBS portfolios, Smith Graham will
develop cash flow projections, conduct stress-testing scenarios, and
assess risks to the portfolio.
Under the Housing and Economic Recovery Act of 2008 (HERA), the Treasury
was granted authority to purchase GSE securities to provide stability to
the financial and housing markets, and the Treasury’s MBS portfolio was
acquired in late 2008 and throughout 2009. The HERA authority to
purchase new securities for the portfolio expired in December 2009.
“The opportunity to work with State Street Global Advisors to help
manage the mortgage-backed securities portfolio for the Treasury
Department is a great privilege,” said Gerald Smith, Chairman & Chief
Executive Officer at Smith Graham.
“We are delighted to be collaborating with Smith, Graham & Company to
help the Treasury manage its investments and protect the taxpayer,” said
Brian Kinney, Managing Director at SSgA.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management that sophisticated investors worldwide rely on for a
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, one of the world’s
leading providers of financial services to institutional investors.
About Smith Graham & Company
Smith, Graham & Co.Investment Advisors, L.P. provides fixed income and
equity investment strategies for institutional clients. Founded in 1990
in Houston, Texas, Smith Graham is 100% employee-owned and is one of the
nation’s largest minority-owned investment management firms. As of March
31, 2010, the firm had $5 billion in assets under management, of which
$4 billion was managed utilizing their fixed income strategies. Smith
Graham has two offices: their headquarters in Houston, Texas and a full
service office in New York City. To find out more, please visit www.smithgraham.com.
Source: State Street
Contact:
State Street Corporation
Arlene Roberts, +1-617-664-3933