Active listening, inventive thinking: Tackling the toughest investment challenges.
For more than three decades, the Investment Solutions Group (ISG) has developed asset class-spanning products and services aimed at realizing our clients’ diverse goals. Today, we serve clients around the world, with more than $234 billion in assets under management and under advisory/consulting.*
We provide a wide range of investment solutions, from implementing short-term, tactical exposures to fully discretionary mandates (also known as “Outsourced CIO”). Here are some of our key multi-asset offerings:
While numerous uncertainties, including the Omicron outbreak, cast a shadow on the economic growth outlook, we believe global economies exhibited resiliency as the fundamental backdrop remained sturdy. Monetary policy should remain accommodative in the near term, and the improving labor market will contribute to the growth in 2022. While some caution is reasonable, the environment is broadly supportive of growth assets.
Even as inflation and supply chain constraints weighed on global growth, the sanguine jobs report suggests easing pressure. Strong margins should mean companies will be able to maintain their pricing power, which bodes well for future growth. While some caution is justified, our positive outlook for economic growth is supportive for growth assets.
Markets have started to encounter some disturbances, including supply chain troubles, labor shortages and soaring energy prices. However, monetary policy should remain accommodative going into 2022 and global growth should continue to support corporate profits and risk assets. Overall, the economic recovery will continue, albeit at a more moderate pace, warranting some near-term caution.
Each month, the State Street Global Advisors Investment Solutions Group (ISG) meets to debate and ultimately determine a Tactical Asset Allocation (TAA) that can be used to help guide near-term investment decisions for client portfolios. By focusing on asset allocation, the ISG team seeks to exploit macro inefficiencies in the market, providing State Street clients with a tool that generates alpha that is distinct (i.e., uncorrelated) from stock picking and other traditional types of active management. Here we report on the team’s most recent TAA discussion.
* As of June 30, 2019. Total AUM of $211B excludes execution-only LDI. Derivatives-based exposure management AUM represents the notional value of exposure managed. Assets under advisory/consulting of $23B 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.