Collective Investment Vehicles
Asset managers are always in search of new opportunities. Taking advantage of these opportunities involves navigating numerous headwinds, including an evolving regulatory environment and relentless pressure on costs. With our global strength and local expertise, backed by advanced technologies, State Street can help asset managers like you maximize new opportunities while enjoying unprecedented levels of efficiency and control.
Quantitative solutions for enhancing returns and managing risk
We offer industry-leading solutions across a wide range of capabilities to support all of your financial requirements — from the most basic trade to the most complex portfolio transition.
Asset managers globally use State Street Global Markets’ portfolio solutions to optimize their performance with portfolio analysis and diagnostics, rebalancing and risk monitoring, strategy implementation, and trading. The industry-leading transition management team offers an agency-based fiduciary partnership that ensures cost effective and efficient interim exposure management, operational transparency, access to unique liquidity and multiple trading options, including internal and external crossing designed to minimize market impacts and spreads.
Commission management simplifies the process of receiving, reconciling and paying commissions. The program allows you to trade with your broker of choice, while reducing the cost and administrative burden of managing commission sharing arrangements (CSAs), customer commission arrangements (CCAs), and research relationships.
Enhanced Custody Model
State Street’s enhanced custody model (ECM) provides a unique alternative to traditional prime brokerage in the operation of long/short mandates. Based on custody and securities borrowing and lending, ECM helps reduce costs, enhance returns, and create operational and risk efficiencies.
A robust and time-tested currency management model and a full suite of related research and advisory services delivers currency hedging that mitigates the uncompensated currency risk embedded in investment portfolios. Share class hedging helps collective investment managers distribute products across multiple markets by replicating fund excess returns in multiple base currencies.
Securities lending can potentially enhance returns without adding undue risk exposure, helping institutional investors seek optimal risk-adjusted returns by lending their securities to borrowers in return for payment. State Street has provided securities lending to clients since 1974 and today services clients worldwide from 11 regional trading offices.
State Street Global Markets has the people, technology and experience to meet your foreign exchange (FX) needs — no matter how complex they may be. You can choose from a range of options to execute your FX transactions. You can contact our traders directly, process trades through Investor Services, or outsource and customize your FX execution process with our automated currency execution platform. Our global sales and trading teams bring you account coverage, advisory services, order handling and market-making in a broad range of currencies around the clock from centers throughout the world. You can take advantage of a full range of currency products, including spot FX, forwards, options and non-deliverable forwards. We also bring you one of the market’s leading electronic executable streaming price services. And our macro strategy team draws on unique research to make actionable investment recommendations.
State Street’s equity sales and trading team supports clients’ trade execution and liquidity needs as a pure agency broker. Services include global portfolio trading and rebalancing, single stock trading, algorithmic trading, company stock trading, benchmark trading and corporate stock repurchase. Proprietary research is blended with fundamental market perspectives to support decision-making, a unique proprietary pool of liquidity minimizes transaction costs and 24-hour coverage is provided by experienced coverage teams worldwide.
Electronic trading platforms
State Street’s eExchange offers electronic trading solutions for foreign exchange (FX), US treasury securities, futures, money markets and exchange traded funds (ETFs). Because we do not trade or take positions in the market, you can rest assured that we are facilitating execution and lending transparency to your processes.
Exchange traded funds (ETF*) expertise
Leverage our expertise in accessing secondary market liquidity, including facilitation of “over-sized” trades and latent liquidity. We can create and redeem in our fund products and act as an authorized participant in multiple fund families to facilitate the creation and redemption process.
State Street Global Markets’ research offering blends a multi-asset class, multi-market strategy team with leading academic and industry experts in a unique collaboration that seeks to enhance and preserve portfolio values for clients. A broad spectrum of proprietary investor behavior indicators illuminates the activities of investors representing some 15 percent of the world’s investable assets.
* ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns. The investment return and principal value of an investment will fluctuate in value, so that when shares are sold or redeemed, they may be worth more or less than when they were purchased. Although shares may be bought or sold on an exchange through any brokerage account, shares are not individually redeemable from the fund. Investors may acquire shares and tender them for redemption through the fund in large aggregations known as creation units. Please see the fund prospectus for more details.