State Street Global Advisors
Encyclopedia
State Street Global Advisors (SSgA) is the investment management division of State Street Corporation
and the world’s second largest asset manager, with $1.9 trillion (USD) in assets under management
as of June 2010.
The company services financial clients by creating and managing investment strategies for non-profit foundations, businesses, corporations, associations, governments, educational institutions, and religious organizations. In addition to institutional services, SSgA produces investment vehicles for the retail market in the United States, Europe, Asia, and Australia.
SSgA employs 1,700 people in 25 locations (11 of which handle assets) around the world.
In 1990 State Street Global Advisors was formed as a separate entity from State Street Bank with the mission of expanding globally. SSgA opened its first global office in London
. By 1994 SSgA had offices in Brussels
, Hong Kong
, Toronto
, Paris
, Sydney
, Tokyo
, Dubai
, San Francisco, Montreal
, and Atlanta. Between 1995 and 1999 five more offices opened in Munich
, Zürich
, Santiago
, Singapore
, and Chicago
. From 2000 to 2007 SSgA set up operations in Milan
, Bangalore
and Melbourne
.
SSgA invented the investment vehicle known as the exchange-traded fund (ETF)
in 1993 with the introduction of the S&P 500 SPDR
product (Ticker: ) , which is traded on the American Stock Exchange
. SSgA is the number two ETF manager in the world second only to BlackRock
.
Assets under management climbed to $161 billion (USD) in 1994 and more than quadrupled to $667 billion by 1999.
Since 2000, SSgA has focused on increasing its client based outside of the United States and developing actively-managed investment products. As of 2006, one-third of assets under management were from non-US investors.
In 2003, SSgA's Boston office moved to the newly completed State Street Financial Center building at One Lincoln Street.
SSgA launched the first foreign real estate ETF in 2006 (Ticker: ) , which provides investors in the US an easy way to access the international housing and commercial development markets.
In January 2011, SSgA completed its acquisition of Bank of Ireland Asset Management (BIAM). The acquisition was first announced in October 2010 for approximately €57 million. The acquisition enhances SSgA’s range of investment management solutions and expands State Street’s overall presence in Ireland where it has been serving institutional clients for 15 years.
In addition to institutional products, SSgA has 46 ETF investment products in the US market, as of March 2007. The ETFs track international and domestic indices based on market capitalization, investment style, sector, industry, or commodity. ETF products are also available in other parts of the world such as Belgium, France, Hong Kong, and Singapore under the streetTracks brand.
SSgA has 26 Mutual Fund products divided by investment type: money markets, bonds, equities, and diversified funds of funds (also known as life style funds).
SSgA partners with seven companies in various markets to produce local investment strategies for clients. They are Advanced Investment Partners; Asian Direct Capital Management; GovernanceMetrics International (GMI); Innovest Strategic Value Advisors, Inc.; Rexiter Capital Management Limited
; Shott Capital Management, LLC; SSARIS Advisors, LLC; The Tuckerman Group, LLC; and Wilton Asset Management, LLC.
In October, 2007, several pension funds have sued State Street Corp. for the alleged mishandling of several bond funds managed by SSgA.
State Street Corp.
State Street Corporation, or simply State Street, is a U.S.-based financial services holding company. State Street was founded in 1792, and is headquartered in the Financial District area of Boston at One Lincoln Street...
and the world’s second largest asset manager, with $1.9 trillion (USD) in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
as of June 2010.
The company services financial clients by creating and managing investment strategies for non-profit foundations, businesses, corporations, associations, governments, educational institutions, and religious organizations. In addition to institutional services, SSgA produces investment vehicles for the retail market in the United States, Europe, Asia, and Australia.
SSgA employs 1,700 people in 25 locations (11 of which handle assets) around the world.
History
The asset management division of State Street Bank was founded in 1978 in Boston, Massachusetts. Its first three products were a domestic index fund, an international index fund (based on the MSCI EAFE index), and a short-term investment fund. By 1989 the division had $53 billion (USD) in assets under management.In 1990 State Street Global Advisors was formed as a separate entity from State Street Bank with the mission of expanding globally. SSgA opened its first global office in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. By 1994 SSgA had offices in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, San Francisco, Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
, and Atlanta. Between 1995 and 1999 five more offices opened in Munich
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
, Zürich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Santiago
Santiago, Chile
Santiago , also known as Santiago de Chile, is the capital and largest city of Chile, and the center of its largest conurbation . It is located in the country's central valley, at an elevation of above mean sea level...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, and Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
. From 2000 to 2007 SSgA set up operations in Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
, Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
and Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
.
SSgA invented the investment vehicle known as the exchange-traded fund (ETF)
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
in 1993 with the introduction of the S&P 500 SPDR
Standard & Poor's Depositary Receipts
The Standard & Poor's Depositary Receipts were launched by Boston asset manager SSgA State Street Global Advisors on January 29, 1993 as the first exchange-traded fund in the United States ; and are part of the SPDRs ETF chain.Designed and developed by American Stock Exchange executives Nathan Most...
product (Ticker: ) , which is traded on the American Stock Exchange
American Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
. SSgA is the number two ETF manager in the world second only to BlackRock
BlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
.
Assets under management climbed to $161 billion (USD) in 1994 and more than quadrupled to $667 billion by 1999.
Since 2000, SSgA has focused on increasing its client based outside of the United States and developing actively-managed investment products. As of 2006, one-third of assets under management were from non-US investors.
In 2003, SSgA's Boston office moved to the newly completed State Street Financial Center building at One Lincoln Street.
SSgA launched the first foreign real estate ETF in 2006 (Ticker: ) , which provides investors in the US an easy way to access the international housing and commercial development markets.
In January 2011, SSgA completed its acquisition of Bank of Ireland Asset Management (BIAM). The acquisition was first announced in October 2010 for approximately €57 million. The acquisition enhances SSgA’s range of investment management solutions and expands State Street’s overall presence in Ireland where it has been serving institutional clients for 15 years.
Products and services
SSgA creates customized investment strategies for institutions. SSgA manages the assets for clients by setting up commingled funds (otherwise known as common trust funds).In addition to institutional products, SSgA has 46 ETF investment products in the US market, as of March 2007. The ETFs track international and domestic indices based on market capitalization, investment style, sector, industry, or commodity. ETF products are also available in other parts of the world such as Belgium, France, Hong Kong, and Singapore under the streetTracks brand.
SSgA has 26 Mutual Fund products divided by investment type: money markets, bonds, equities, and diversified funds of funds (also known as life style funds).
SSgA partners with seven companies in various markets to produce local investment strategies for clients. They are Advanced Investment Partners; Asian Direct Capital Management; GovernanceMetrics International (GMI); Innovest Strategic Value Advisors, Inc.; Rexiter Capital Management Limited
Rexiter
- Rexiter Capital Management Limited :Rexiter Capital Management Limited is a boutique investment management firm who specialise exclusively in emerging markets and Asian investments. At the end of December 2010, Rexiter’s assets under management totaled $4.5 billion...
; Shott Capital Management, LLC; SSARIS Advisors, LLC; The Tuckerman Group, LLC; and Wilton Asset Management, LLC.
In October, 2007, several pension funds have sued State Street Corp. for the alleged mishandling of several bond funds managed by SSgA.