Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter