Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter