Choosing the Right Manager Matters
We've been building and managing some of the world's most successful index funds for 40 years. Our goal? To deliver cost-effective index return outcomes with no surprises or unintended biases.
Indexing is our Core
We helped pioneer the indexing category by creating institutional-caliber index funds, and today, indexed assets represent the majority of our AUM and revenues. As the investment arm of State Street Corporation—which is entrusted with 10% of the world’s assets1 —we are built to devote significant resources toward supporting evolving client needs through product development, process improvement and infrastructure enhancement. In today’s fast changing world, that commitment to continued innovation matters.
Global institutional indexing clients
Indexing assets under management 2
Our experienced indexing team pays attention to the thousands of details that can impact the risk and return of a fund’s total performance. To deliver the best possible outcomes for our clients, we focus on the following key areas:
We select the most appropriate methodology with an aim to deliver index-like returns and employ highly advanced techniques ranging from full replication to optimization in equities and stratified sampling in fixed income.
Our 24-hour global trading desk utilizes sophisticated trading strategies and other market leading tools to minimize trading costs and respond to changes across hundreds of indexes with exceptional efficiency and effectiveness.
By incorporating state-of-the-art proprietary and third-party technology, our investment teams have the insights they need to assess portfolio risks and the flexibility to incorporate value-add efficiencies and pursue tactical opportunities.
ESG Research & Innovation
To address our clients’ current and long-term needs, we focus much of our research activity on innovative approaches to emerging issues such as climate change and helping clients improve their ESG profiles.
How We Work
Indexing: The Pursuit of No Surprises
For four decades, our disciplined, precise approach has helped us deliver index returns as expected by our clients.
We offer clients access to hundreds of index strategies across core beta, smart beta, ESG and tax-aware solutions. This includes a broad range of global, regional and country exposures, as well as a truly comprehensive selection of industries, sectors and alternative investments. These offerings are available in a range of different vehicles and domiciles.
Our broad range of offerings span the global Fixed Income spectrum: from developed market sovereigns, to complex exposures such as high yield credit and emerging markets, and everything in between. We work with clients to find the right strategy and vehicle to reach their investment goals.
Our SDPR family gives institutional investors access to a range of transparent and cost-effective equity and fixed income exchange-traded funds with tight spreads, deep liquidity and ample diversification.
1Source: State Street and McKinsey Global Institute, Global Capital Markets, December 31, 2018. Updated in April 2020 per bespoke McKinsey report. This represents State Street’s Q4 2018 AUCA (31.6$T) as a proportion of total global financial assets ($295T). Most recent data available.
2State Street Global Advisors. As of December 31, 2020.
Investing involves risk including the risk of loss of principal.
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The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
The views expressed in this material are the views the Index team through the period ended February 2021 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
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