GLOBAL - Bank of Ireland Asset Management's strength in fundamental equity and fixed income strategies help State Street Global Advisors (SSgA) plug a hole in their product offering and meet the needs of clients looking for more holistic solutions.
State Street announced last month it would buy Bank of Ireland Asset Management, the country's largest fund manager with €36bn ($50.5bn) in assets under management, for €57m. (Global Pensions; October 22, 2010)
SSgA is known for its capabilities in passive management and touts $1.2trn in passive assets. However, some $100bn is managed in active quantitative strategies.
"Historically we haven't been oriented in the fundamental space and we think this is a good team, with a good track record where we can continue to grow," said Jay Hooley, chief executive officer of parent company State Street at a press briefing in London today.
"But the question is crusted around future orientation towards solutions. Instead of simply choosing a narrow asset class, part of the market is looking towards outcomes, and we need to have a broader set of asset classes to address (this)," said Hooley.
Scott Powers, chief executive of SSgA said Bank of Ireland has two products that "are ready to export" to SSgA's existing clients.
The Irish manager has a global fundamental equity strategy with a value bias that has been translated into two products. One is a heavily concentrated portfolio with an aggressive return target of 5% above its benchmark, and the other is a more risk-constrained strategy with 100-120 stocks with "more modest return expectations", said Powers.
Officials at State Street are looking to grow their non-US business and have set a target of doubling their non-US revenues over the next five years. The non-US revenue reported in 2009 was $2.9bn, representing 36% of total revenues.
The firm has made three non-US acquisitions in the past year and a half including the April 2009 acquisition of Jersey-based Mourant International Finance Administration, and the May 2010 acquisition of Italy's Intesa Sanpaolo Securities Services Business. (Global Pensions; May 17, 2010)
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