State Street ETF Model Portfolios now Accessible Through BT Panorama
SYDNEY, 28 April 2020 State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), today announced the inclusion of the State Street ETF Model Portfolios on BT Panorama, expanding the availability of their suite of exchange-traded fund (ETF) Model Portfolios to Australian financial advisers.
From today, all State Street Risk-Based ETF Model Portfolios – Moderate, Balanced and Growth – as well as the State Street Target Income ETF Model Portfolio, are available on the platform.
They have been established with an open architecture investment structure, meaning financial advisers, on behalf of their investors, can choose a portfolio of ETFs which cover a range of sectors, asset classes and product issuers.
Model portfolios are investment strategies created and maintained by asset managers, where teams of experienced investment professionals can assist advisers to serve existing clients and attract new business more effectively.
According to the Investment Trends 2020 Managed Accounts Report, the number of financial planners who recommended managed accounts has doubled in the last five years.1
With total cost of ownership being an important consideration, the State Street ETF Model Portfolios are well placed in respect to the diversified managed portfolio options available on the BT Panorama platform.
“Since launching our ETF model portfolios in 2019, uptake has been extremely positive. Many financial advisers favour model portfolios for their transparency, enhanced client engagement, improved investment performance, cost effectiveness and less administration”, said Meaghan Victor, Head of SPDR ETF Asia Pacific Distribution.
“Financial advisers have responded positively to the State Street Target Income Portfolio for its goals-based approach and in a low growth, low interest rate environment, investors are increasingly looking for ways to generate income in a simple and cost-effective way, without increasing risk.
“A key factor that differentiates State Street Risk-Based ETF Model Portfolios from competitors is the inclusion of smart beta in the global allocation, which supports additional capital growth while maintaining traditional risk tolerances. In other words, our risk-based portfolios are not your traditional 60/40, or 70/30 allocation – they are skewed towards growth while maintaining the same level of risk as traditional allocations,” Ms Victor said.
BT Panorama is a dedicated platform for financial advisers to manage their clients’ investment and superannuation portfolios.
1 State Street Global Advisors SPDR ETFs / Investment Trends 2020 Managed Accounts Report, April 2020. Commissioned by Investment Trends, the survey was carried out between December 2019 and February 2020. The sample of 960 respondents includes RG146 competent accountants and dealer group managers who personally provide advice.
- For financial advisers / wholesale clients only – Not for distribution to retail clients-
The recipient warrants by receipt of this material that they are a wholesale client, as defined under the Australian Corporations Act 2001 (Cth). State Street Global Advisors, Australia Limited (AFSL Number 238 276, ABN 42 003 914 225) (“SSGA, AL”) is the investment manager for the State Street ETF Model Portfolios and State Street Global Advisors, Australia Services Limited (AFSL number 274900 ABN 16 108 671 441) is the Responsible Entity and issuer of units in the State Street SPDR ETFs which are Australian registered managed investment schemes quoted on the AQUA market of the ASX or listed on the ASX. State Street ETF Model Portfolios may include State Street SPDR ETFs and other third party ETFs. This material is general information only and does not take into account your or your client’s individual objectives, financial situation or needs and you should consider whether it is appropriate for you or your client. You should ensure that your clients consider the product disclosure document of the underlying ETFs, available at www.ssga.com or the third party ETFs website, before deciding whether to acquire or continue to hold units in an ETF.
General Risks ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. ETFs typically invest by sampling an index, holding a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index. Investing involves risk including the risk of loss of principal. Diversification does not ensure a profit or guarantee against loss. Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. An investment in the model portfolio carries a number of standard investment risks; these risks are outlined in each Provider’s PDS which should be read in full and understood by the potential investors.
Implementation Risk State Street does not manage the accounts of retail investors pursuant to the model portfolio strategies and the strategies are only available to retail investors through various Providers that offer account management and other services to retail investors. The actual results of accounts managed by a Provider that receives access to the strategies may differ substantially from the hypothetical results of the State Street ETF Model Portfolios for a variety of reasons, including but not limited to:
i. the fees assessed by the Provider and other third parties;
ii. the Provider’s decision to exercise its discretion to implement a given strategy in a way that differs from the information provided by State Street;
iii. the timing of the Provider’s implementation of strategy updates; and
iv. investor imposed investment restrictions; and the timing and nature of investor initiated cash flow activity in the account.
“SPDR” is a trademark of Standard & Poor’s Financial Services LLC (“S&P”) and has been licensed for use by State Street Corporation. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA, AL’s express written consent.