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.