Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

State Street redomiciles £1.1 billion range in cost drive

State Street redomiciles £1.1 billion range in cost drive

State Street Global Advisors (SSgA) is to merge a seven-strong £1.1 billion Irish-registered bond tracker range into an equivalent Luxembourg-domiciled range in a bid to lower costs.

The suite of trackers include the £26 million EMU Government Bond Index fund; £101 million US Corporate Bond Index fund; £153 million EMU Government Long Bond Index fund; £255 million Euro Inflation Linked Bond Index fund; £68 million World Government Bond Index fund; £358 million World Broad Investment Grade Bond Index fund; and £165 million Euro Corporate Bond Index fund.

State Street already has products of the same name registered in Luxembourg for four of the funds – EMU Government Bond Index, World Government Bond Index, World Broad Investment Grade Bond Index, Euro Corporate Bond Index – and will launch new vehicles for the other three.

A State Street spokesperson told Wealth Manager: ‘The merging of seven SSgA Dublin bond products into Luxembourg Sicavs is a move aimed at achieving better levels of operational efficiency, and longer-term cost savings for clients of both the merging and the receiving funds.’

As an example of the potential for cost savings, State Street said that fixed costs were expected to decline as a percentage of assets under management in the larger combined funds. The group added that higher levels of operational efficiency were likely be realised as a consequence of the reduced operational and administrative burden.

State Street argued too that the expanded investor base for the merged funds would reduce the risks posed by large redemptions from single unitholders.

The costs of implementing the transition will be borne by State Street, not the funds themselves.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter