State Street Global Advisors, the asset management arm of State Street Corporation, today announced it has partnered with leading Managed Accounts platform Praemium to offer a suite of new exchange-traded fund (ETF) Model Portfolios.
The ETF Model Portfolios available on the Praemium platform include a range of risk-based ETF Model Portfolios – moderate, balanced and growth – aimed at pursuing optimal capital efficiency over a long-term horizon, and an objective-based model portfolio, which will provide investors with an income-focused solution.
Praemium’s Managed Accounts platform will be the first platform offering the new suite of State Street’s ETF Model Portfolios.
“We are excited that our new ETF Model Portfolios are now available and accessible to advisers through Praemium’s market-leading Managed Account Platform,” said Meaghan Victor, Head of SPDR ETFs, Australia and Singapore.
Praemium’s Head of Product and Marketing, Mat Walker, said: “We welcome the addition of the State Street’s ETF Model Portfolios onto our platform. We are focused on providing our advisers and their clients with access to the greatest choice of quality investment portfolios and broadest range of assets from high-calibre, reputable investment managers.
“With no investment manager fee on their Separately Managed Accounts (SMA) models, the State Street portfolios not only provide a breadth of choice for our advisers but offer a cost-efficient solution that is becoming increasingly important in the current environment for both advisers and their clients,” Walker added.
The ETF Model Portfolios available on Praemium have been established with an open architecture investment structure. This means that investors are offered a portfolio of ETFs from a range of sectors, asset classes and product issuers.
“Our partnership with Praemium opens up our ability to bring institutional quality and professional funds management to more investors. The combination of ETFs and no investment manager fees on our model portfolios means that we can provide cost-conscious solutions,” said Victor.
Walker added: “Praemium’s next-generation integrated Managed Account platform offers advisers the ultimate flexibility to tailor solutions to their entire client base on a single platform. The breadth of our investment choice and access to globally recognised expert managers is a key part of our market-leading offering and the continued growth of our SMA.”
State Street Global Advisors’ suite of risk-based ETF Model Portfolios were constructed based on risk tolerance in order to achieve market exposure across equities, including multi-factor smart beta, and fixed income markets. The objective-based ETF Model Portfolio, now available through Praemium’s SMA platform, focuses on multi-asset class allocation to diversify across income sources, meaning that in a low growth, low-interest rate environment, investors can still generate income in a simple and cost-effective way.
Each of the portfolios has been designed, constructed and will be managed by State Street Global Advisors’ Investment Solutions Group, a team established over thirty years ago and with more than US$286 billion in assets under management and assets under advisory/consulting.
The State Street ETF Model Portfolios are available through Praemium from today.