State Street Global Advisors

State Street Global Advisors (SSGA) is the investment management division of State Street Corporation and the world's fourth largest asset manager, with nearly $4.14 trillion (USD) in assets under management as of 31 December 2021.

The company services financial clients by creating and managing investment strategies for governments, corporations, endowments, non-profit foundations, corporate treasurers and CFOs, asset managers, financial advisors and other intermediaries around the world.

SSGA employs 2,500 people in 28 countries around the world. As of March 2021, it had 142 exchange traded funds (ETFs) owned and controlled by the company.

History

State Street Global Advisors, the asset management division of State Street Corporation, 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: first London, 10 more international locations by 1994, with 15 by 1999.

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 three ETF manager in the world after BlackRock and Vanguard.

Assets under management climbed to $161 billion (USD) in 1994 and more than quadrupled to $667 billion by 1999.

As of 2006, one-third of assets under management were from non-US investors.

* In 2003, State Street Global Advisors' Boston office moved to the newly completed State Street Financial Center building at One Lincoln Street.
* State Street Global Advisors 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, State Street Global Advisors completed its acquisition of Bank of Ireland Asset Management (BIAM). The acquisition was first announced in October 2010 for approximately €57 million. State Street Global Advisors's presence in Ireland, which began 1996, had by 2010 grown to "more than 2,000 local employees."

State Street Global Advisors is among the signatories of the "Principles for a Responsible Civilian Firearms Industry," which seeks to engage firearms manufacturers, dealers, and retailers in promoting gun safety.

''Fearless Girl''

For March 2017, State Street Global Advisors commissioned a statue, ''Fearless Girl'' by Kristen Visbal, and located it temporarily in the Financial District, Manhattan, in front of the Wall Street icon ''Charging Bull''. The statue is an advertisement for an index fund which comprises gender diverse companies that have a higher percentage of women among their senior leadership. While some have seen it as an encouragement of women in business, some women criticized the statue as "corporate feminism" that violated their own feminist principles.

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; Shott Capital Management, LLC; SSARIS Advisors, LLC; The Tuckerman Group, LLC; and Wilton Asset Management, LLC.

Lawsuits

In October 2007, several pension funds sued State Street Corp. for the alleged mishandling of several bond funds managed by SSGA.

In 2008, State Street Bank was sued by Trust Co. for Fixed Income Funds Investment. The case was settled in 2010.

In April 2009, a class action suit was filed against State Street, alleging SSGA chose illiquid, leveraged, and risky securities in their short-term, liquid fund products.

In October 2017, SSGA agreed to pay over $5 million in back pay and interest to settle allegations the company underpaid women and African-American employees.

Notes

External links

State Street Global Advisors
(company website)

– SSGA's site for exchange traded funds (ETFs) and mutual funds

{{Major asset management companies

American companies established in 1978
Financial services companies established in 1978
Investment management companies of the United States
Exchange-traded funds