State Street Global Advisors announces the launch of the SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF

Thursday, February 1, 2018 3:20 pm EST

Dateline:

January 29

Public Company Information:

NYSE:
STT
"Many large capital investors hold exposure to the index as a component of their strategic asset allocation, and increasingly we are seeing investors use global aggregate in more tactical ways, as a complement to more volatile strategies, to transition assets or as a liquidity sleeve."

LONDON, January 29, 2018 —State Street Global Advisors, the asset management business of State Street Corporation (NYSE:STT), today announced the launch of the SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF.  Effective today, the fund is available unhedged on the Xetra exchange.  It will launch on the London Stock Exchange on January 30 and on Borsa Italiana later this year. Share classes hedged to USD, Euro, GB sterling and the Swiss franc will be available in the coming weeks. 

The SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF provides investors with cost-effective exposure to one of the world’s largest and most liquid global fixed income indexes.  It covers 94 percent of the investible fixed income universe with exposure to more than 20 thousand securities, more than 2,400 issuers and 24 currencies in more than 70 countries.[1]

“The extremely low yields in European bond markets make it compelling for European investors to seek access to a broader universe of yield dynamics outside their local region,” said Stephen Yeats, managing director and head of EMEA and APAC Fixed Income Beta Solutions for State Street Global Advisors.  “An allocation to the global aggregate index offers investors one-stop-shop access to the global bond market. Used as the basis of a core fixed income allocation, or simply as a source of diversification from domestic bonds, an exposure to the Global Aggregate index may help increase diversification, result in lower volatility and deliver better risk-adjusted returns compared to other bond indices.”

“Delivering the returns of the global aggregate in index form is complex given the extraordinary number of securities involved, but it is achievable with specialist skill and the global reach to trade effectively. Our portfolio managers in this strategy are 100 percent focused on tracking the index and understand the investible universe from all risk dimensions,” continued Yeats.

“The global aggregate index is the benchmark of choice for a large proportion institutional investors,” added Rory Tobin, global co-head of SPDR ETFs for SSGA. “Many large capital investors hold exposure to the index as a component of their strategic asset allocation, and increasingly we are seeing investors use global aggregate in more tactical ways, as a complement to more volatile strategies, to transition assets or as a liquidity sleeve.”

“Historically, given the complexity of the asset class, global aggregate mandates have been executed by active managers and as such were predominantly the domain of large clients, and out of reach for smaller investors,” continued Tobin. “As the only physical UCITS ETF in the space without securities lending, this strategy has a potential value add for investors of all sizes.”

“At SSGA we have been managing global aggregate strategies since 2001.[2] The launch of the SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF represents a natural extension of our capabilities and we are delighted to add the fund to our 90+ UCITS ETF range,” concluded Tobin.

The SPDR UCITS range of fixed income strategies manages $10B across 33 products and gathered a market share of over 10% of ETF flows in 2017[3]. SSGA has more than 30 years of experience managing fixed income index strategies. It has investment centres in Boston, London, Singapore, Tokyo and Sydney providing 24 hour coverage. SSGA currently offer over 40 indexed strategies globally managing USD336B of assets, of which over USD50B is in aggregate strategies. [4]

 

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit www.spdrs.com.

 

About State Street Global Advisors

For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivalled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.

State Street Global Advisors is the investment management arm of State Street Corporation.

*Assets under management were $2.78 trillion as of December 31, 2017. AUM reflects approx. $35 billion (as of December 31, 2017) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated. Please note that AUM totals are unaudited.


 

Investing involves risk including the risk of loss of principal.

Diversification does not ensure a profit or guarantee against loss.

SPDR ETFs is the exchange traded funds (“ETF”) platform of State Street Global Advisors and is comprised of funds that have been authorised by European regulatory authorities as open-ended UCITS investment companies (“Companies”).

The views expressed in this material are correct through the period ended 25 January 2019 and are subject to change based on market and other conditions

The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor. All material has been obtained from sources believed to be reliable

The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss Regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research

Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

You should obtain and read the SPDR prospectus and relevant Key Investor Information Document (KIID) prior to investing, which may be obtained from www.spdrs.com. These include further details relating to the SPDR funds, including information relating to costs, risks and where the funds are authorised for sale.

© 2018 State Street Corporation - All Rights Reserved

Expiration date: 31 January 2019

2002491.1.1.EMEA.PR


[1] Source:  BarclaysPoint 31 December 2017

[2] Source:   State Street Global Advisors 31 December 2017

[3] Source:  State Street Global Advisors 31 December 2017

[4] Source:  State Street Global Advisors 31 December 2017

Contact:

Sarah Higgins
+44 20 3395 6344 / +44 7767 671520
Sarah_Higgins@ssga.com

Media Contacts

Contact a member of the State Street Media Relations Team.

Social Media

Business Wire NewsHQ℠