GERMANY - State Street Global Advisors (SSgA) will discontinue its Kapitalanlagegesellschaft (KAG) status in response to recent regulatory changes in Germany, which make it no longer necessary for the company to separate its two Munich advisory services.
SSgA’s asset management capabilities in Germany have historically resided under two legal entities: State Street Global Investments GmbH, a German Investment Trust through which it provided asset management services to institutional clients as well as administration of Spezialfonds and State Street Global Advisors GmbH, established to provide advisory services not previously allowed under a KAG structure, the firm said.
The changes will allow SSgA to merge the two entities.
“The designation as a German KAG is no longer necessary to deliver the services for which institutional investors and their consultants know us,” said head of SSgA in Germany, Klaus Esswein (pictured).
“With our new streamlined operations we will be able to provide services in a more efficient manner.”
The merger will take place on September 30 to form a single SSgA GmbH, which will operate under the new legal structure of a German financial services institute, effective from early 2005.
As part of the transition, SSgA will discontinue its provision of Spezialfonds administration services with current clients having that service transferred to new providers.
“We are very confident that this new alignment will be seamless to our clients,” Esswein said.
“SSgA enjoys great trust from its customers in Germany and Austria both in the traditional business of passive asset management and in active strategies and tactical asset allocation.
“As companies continue to seek out specialised portfolio managers, the new legal structure of SSgA will better match these demands.”
SSgA, the investment management group of State Street Corporation, holds US$1.2trn in investment programs and portfolios worldwide.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).