Dynamic Market Environment Drives Need for New Solutions
BOSTON--(BUSINESS WIRE)--
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 2012
2McKinsey & 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 UCITs
3McKinsey & Company research
4 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 Corporation
Alicia Curran Sweeney, +1-617-664-3001
www.statestreet.com
@StateStreet
Source: State Street Corporation