State Street Targets $25B for Model-Portfolio Business
Copyright Monica Schipper, Getty Images Investment>ETFs State Street Targets $25B for Model-Portfolio Business Model portfolios continue to grow more popular among financial advisors. (Bloomberg) -- State Street Global Advisors is aiming to grow its model-portfolio business fivefold in as many years as off-the-shelf investment strategies boom across Wall Street.
The asset manager is targeting “north of $25 billion” of assets in its model portfolios over the next five to six years, from roughly $5 billion currently, according to Peter Hill, the firm’s head of model portfolio solutions.
The renewed push comes as model portfolios — which bundle together exchange-traded funds and mutual funds into ready-made strategies — grow ever more popular among the financial advisor community. BlackRock Inc., one the largest such providers with $100 billion in assets, expects them to command $10 trillion in industry assets over the next five years, from about $4 trillion as of July.
State Street is attempting to carve out a larger slice of the growing pie.
“We are fully committed to investing in our model portfolio business to meet the needs of our advisors and our platforms as their adoption rate of models continues to grow,” Hill said in an interview on the sidelines of the Exchange ETF conference in Miami, Florida.
The asset manager has “refocused” on the operation over the last two years, said Hill, who’s been in his current role for roughly 18 months. The firm plans to hire between seven to 10 employees in marketing and sales to support the effort.
“There’s a lot that goes into the model portfolio business from an infrastructure perspective,” he said.
TAGS: Mutual Funds Alternative Investments 0 comments Hide comments
Comment * Switch to plain text editorMore information about text formats
Text format CommentsPlain text Comments- Allowed HTML tags: <em> <strong> <blockquote> <br> <p>
- No HTML tags allowed.
- Web page addresses and e-mail addresses turn into links automatically.
- Lines and paragraphs break automatically.
- Load More
- Next Article
- Previous Article
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.
Originally posted on: https://www.wealthmanagement.com/etfs/state-street-targets-25b-model-portfolio-business