State Street Global Advisors Launches Suite of ETF Model Portfolios for the Australian Market
SYDNEY, 30 May 2019 State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT) today 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
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 categorization process.
3 State Street Global Advisors, Morningstar, as of 31 December 2018.
- 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.