State Street's ( NYSE: STT ) asset management business, State Street Global Advisors , said Thursday it will develop and manage a suite of active systematic fixed income solutions through an alliance with Barclays’ ( NYSE: BCS ) Research business.
Specifically, State Street ( STT ) will leverage data sourced from systematic strategy indices originated by Barclays Quantitative Portfolio Strategy team, in an effort 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.
The collaboration comes at a time when interest for using systematic fixed income strategies is strong, as institutional investors seek to uncover mispricings through intensive data analysis. In fact, 91% of institutional investors had an appetite to utilize such strategies over the next year, according to a survey by State Street Global Advisors, which has over $1T in fixed income, cash and currency assets under management.
"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,” Steinaway added.
Last year, State Street Global Advisors lowered fees on two fixed income ETFs .
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State Street works with Barclays to create active fixed income strategies