State Street launches lifecycle offering
State Street Global Advisers (SSgA) has imported investment processes from its US global investor base to design a suite of lifecycle investment options for an ageing Australian demographic.
Global chief investment officer for SSgA 's Investment Solutions Group (where the processes originated) Dan Farley said portfolio construction professionals had demanded solutions that provided investor engagement, adapted to different life stages and explicitly managed risk and return.
“We believe a solution that addresses their lifestyle aspirations, offers a fit-for-purpose strategic asset allocation, dynamically manages exposures and explicitly manages equity risk ... could be a game changer in the market,” Farley said.
Unlike the old balanced fund approach which relied on long-term strategic asset allocation and had failed many investors, its strategies used three core investment processes from its Investment Solutions Group, SSgA said: strategic asset allocation matched to different retirement lifestyle characteristics; dynamic asset allocation through its Market Regime Indicator; and an equity protection overlay.
The strategies will first be launched through Netwealth for adviser networks, whilst SSgA is also looking to partner with investors to include the products in superannuation offerings.
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