State Street Global Advisors Now Offering ETF Model Portfolios Through Praemium
SYDNEY, 13 June 2019 State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), today announced it has partnered with leading Managed Accounts platform Praemium to offer a suite of new exchange-traded fund (ETF) Model Portfolios.
The ETF Model Portfolios available on the Praemium platform include a range of risk-based ETF Model Portfolios – moderate, balanced and growth – aimed at pursuing optimal capital efficiency over a long-term horizon, and an objective-based model portfolio, which will provide investors with an income-focused solution.
Praemium’s Managed Accounts platform will be the first platform offering the new suite of State Street’s ETF Model Portfolios.
“We are excited that our new ETF Model Portfolios are now available and accessible to advisers through Praemium’s market-leading Managed Account Platform,” said Meaghan Victor, Head of SPDR ETFs, Australia and Singapore.
Praemium’s Head of Product and Marketing, Mat Walker, said: “We welcome the addition of the State Street’s ETF Model Portfolios onto our platform. We are focused on providing our advisers and their clients with access to the greatest choice of quality investment portfolios and broadest range of assets from high-calibre, reputable investment managers.
“With no investment manager fee on their Separately Managed Accounts (SMA) models, the State Street portfolios not only provide a breadth of choice for our advisers but offer a cost-efficient solution that is becoming increasingly important in the current environment for both advisers and their clients,” Walker added.
The ETF Model Portfolios available on Praemium have been established with an open architecture investment structure. This means that investors are offered a portfolio of ETFs from a range of sectors, asset classes and product issuers.
“Our partnership with Praemium opens up our ability to bring institutional quality and professional funds management to more investors. The combination of ETFs and no investment manager fees on our model portfolios means that we can provide cost-conscious solutions,” said Victor.
Walker added: “Praemium’s next-generation integrated Managed Account platform offers advisers the ultimate flexibility to tailor solutions to their entire client base on a single platform. The breadth of our investment choice and access to globally recognised expert managers is a key part of our market-leading offering and the continued growth of our SMA.”
State Street Global Advisors’ suite of risk-based ETF Model Portfolios were constructed based on risk tolerance in order to achieve market exposure across equities, including multi-factor smart beta, and fixed income markets.
The objective-based ETF Model Portfolio, now available through Praemium’s SMA platform, focuses on multi-asset class allocation to diversify across income sources, meaning that in a low growth, low interest rate environment, investors can still generate income in a simple and cost-effective way.
Each of the portfolios have been designed, constructed and will be managed by State Street Global Advisors’ Investment Solutions Group, a team established over thirty years ago and with more than US$286 billion in assets under management and assets under advisory/consulting.1,2
The State Street ETF Model Portfolios are available through Praemium from today.
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.
- 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.