State Street Global Advisors and Barclays Quantitative Portfolio Strategy Announce Collaboration on Active Systematic Fixed Income Strategies

Rhea-AI Summary

State Street Global Advisors announced a collaboration with Barclays’ Research to develop active systematic fixed income strategies. This partnership aims to create investment products leveraging data from Barclays' systematic strategy indices. Matthew Steinaway, Chief Investment Officer of State Street, highlighted the challenges in adding value with active strategies due to efficient markets. A recent report indicated that 91% of institutional investors are interested in systematic strategies. State Street manages over $1 trillion in fixed income assets, enhancing its capabilities through this collaboration.

Positive

• Collaboration with Barclays enhances product offerings in active systematic fixed income strategies.
• 91% of institutional investors show interest in systematic fixed income strategies, indicating strong market demand.
• State Street manages over $1 trillion in fixed income assets, providing a strong foundation for the new strategies.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced a collaboration with Barclays’ Research business through which State Street Global Advisors will develop and manage a suite of active systematic fixed income strategies.

Through the collaboration, State Street Global Advisors will develop and manage investment products and strategies, leveraging data sourced from systematic strategy indices created by Barclays Quantitative Portfolio Strategy (Barclays QPS) team. 

“By collaborating with Barclays’ QPS team, we will be able to create a suite of active fixed income products that leverage the strengths of our respective organizations and speak to the future of fixed income,” said Matthew Steinaway, chief investment officer - fixed Income, cash and currency at State Street Global Advisors.

“Over the past decade, fixed income securities have traded more efficiently and with greater liquidity,” Steinaway continued. “Nearly half the respondents in our recently published Future of Fixed Income report believe that increasingly efficient markets are making it harder for active strategies to add value.”

Against this backdrop, systematic fixed income strategies and products – in which alpha is driven by intensive data analysis used to uncover mis-pricings – offer a compelling alternative for investors seeking active outcomes in fixed income, and are poised for growth. State Street Global Advisors’ The Future of Fixed Income report found that 91 percent of institutional investors had an appetite to use systematic fixed income strategies over the next 12 months, with investment grade and high yield corporate credit among the most attractive segments.

“We are delighted to be collaborating with State Street Global Advisors on this innovative approach,” said Jeff Meli, head of research at Barclays. “By combining the disciplined portfolio management strength of State Street Global Advisors with the research strength of Barclays QPS, the collaboration will play to the core strengths of both institutions, enabling investors to benefit from innovative systematic fixed income strategies.”

State Street Global Advisors has over $1 trillion in fixed income, cash and currency assets under management, including approximately $500 billion in indexed fixed income^[1], where a deep understanding of fixed income market risk and liquidity are combined with advanced trading and portfolio construction expertise to deliver on client objectives. The firm brings a long history of product innovation in fixed income, systematic investing, and a global distribution network to the collaboration.

Barclays QPS is a leader in quantitative portfolio research. The team has been top-ranked by the Institutional Investor Fixed-Income Research Team survey and has authored four books on systematic investing. Over the past three decades, Barclays QPS developed proprietary methodologies used in the management of fixed income portfolios, including innovative measures of credit portfolio risk that have become industry standard.

A¹ $1.04 trillion FICC, $499.1 billion index FI AUM as of 30 June 2022

View source version on businesswire.com: https://www.businesswire.com/news/home/20221013005402/en/

Luke O’Mahony (EMEA)

+44 7759 067914

lomahony@statestreet.com

Randall Jensen (North America)

+1 (929) 244-3768

rjensen@statestreet.com

Source: State Street Corporation

FAQ

What is the collaboration between State Street and Barclays about?

State Street Global Advisors is collaborating with Barclays’ Research to develop active systematic fixed income strategies, utilizing data from Barclays' systematic strategy indices.

How much fixed income does State Street manage?

State Street manages over $1 trillion in fixed income, cash, and currency assets.

What percentage of institutional investors are interested in systematic fixed income strategies?

According to a recent report, 91% of institutional investors expressed interest in utilizing systematic fixed income strategies over the next 12 months.

Who is leading the fixed income collaboration at State Street?

Matthew Steinaway, the Chief Investment Officer of fixed Income, cash, and currency at State Street Global Advisors, is leading the collaboration.

What are systematic fixed income strategies?

Systematic fixed income strategies use intensive data analysis to uncover mis-pricings and are designed to offer active investment outcomes.