State Street Global Advisors and Barclays Quantitative Portfolio Strategy Announce Collaboration on Systematic Active Fixed Income Strategies
BOSTON, October 13, 2022–(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 systematic fixed income asset strategies.
Through this collaboration, State Street Global Advisors will develop and manage investment products and strategies, leveraging data from systematic strategy indices created by the Barclays Quantitative Portfolio Strategy (Barclays QPS) team.
“Working with the 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 Currencies at State Street Global Advisors.
“Over the past decade, fixed income securities have traded more efficiently and with greater liquidity,” Steinaway continued. “Nearly half of the respondents in our recent publication Future of Fixed Income report find that increasingly efficient markets make it harder for active strategies to add value.”
In this environment, systematic fixed income strategies and products – in which alpha is driven by intensive data analysis used to uncover valuation errors – offer an attractive alternative for investors seeking active results in fixed income securities. and are ready for growth. State Street Global Advisors The Future of Fixed Income report found that 91% of institutional investors want to use systematic fixed income strategies over the next 12 months, with investment-grade and high-yield corporate bonds among the most attractive segments.
“We are delighted to collaborate 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 strengths of both institutions, enabling investors to benefit from innovative systematic fixed income strategies.
State Street Global Advisors manages over $1 trillion in fixed income assets, cash and currencies, including approximately $500 billion in indexed fixed income securities, where an in-depth understanding of fixed income market risk and liquidity is combined with advanced trading and portfolio construction expertise to achieve client objectives. The firm brings to the collaboration a long history of product innovation in fixed income, systematic investing and a global distribution network.
Barclays PSR is a leader in quantitative portfolio research. The team has been ranked among the best in the Fixed Income Research Team survey of institutional investors and has authored four books on systematic investing. Over the past three decades, Barclays QPS has 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 FI AUM index as of June 30, 2022
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