State Street Global Advisors (SSGA) has announced the launch of a new suite of model portfolios powered by exchange-traded funds (ETFs) for Australian investors.
The ETF Models would be managed by SSGA Investment Solutions Group and made available to financial and dealer groups through various platform providers in 2019.
Meaghan Victor, head of SPDR ETFs, Australia and Singapore, said the new suite of ETF model portfolios would provide financial advisers with convenient, cost effective access to State Street’s institutional asset management expertise.
“In today’s environment, we believe the transparent and open architecture nature of our models, will further support advisers to achieve the best outcomes for their clients,” Victor said.
The new suite of ETF model portfolios would be founded with an open architecture investment structure, which meant that ETFs from all providers had been considered and selected to ensure portfolio investment selection is not limited by sector, asset class or product issuer.
The new models that invest in both State Street’s SPDR and third-party ETFs include:
- State Street Risk-Based ETF Model Portfolios: consists of three risk-based ETF model portfolios (moderate, balanced and growth) aimed at pursuing optimal capital efficiency over the long-term by investing in multiple ETFs representing asset classes such as equities, including multi-factor smart beta exposures, and investment grade debt securities.
- State Street Income ETF Model Portfolio: seeks to provide exposure to income and yield-generating investments by investing in multiple ETFs across asset classes, such as high dividend domestic and international equities, investment grade and high yield debt securities.