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Posts From State Street Global Advisors

Shelter from the Storm

Shelter from the Storm

🕔16:45, 7.Apr 2021

The current backdrop poses the question, what are the best defensive strategies for a fixed income investor to pursue in a reflationary environment? As Figure 1 shows, a meaningful bond sell-off during a phase of quantitative easing (QE) is not unusual, largely because QE is ….

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The ESG Opportunity for Corporate Directors

The ESG Opportunity for Corporate Directors

🕔09:46, 26.Feb 2021

Is our board focused on the right issues? Does our board have the appropriate skills and governance process for effective ESG oversight?

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Sector Compass: Light Sector Compass Reopening, Recovery and Rotation

Sector Compass: Light Sector Compass Reopening, Recovery and Rotation

🕔15:25, 22.Jan 2021

Sector Compass: Light Sector Compass Reopening, Recovery and Rotation The sector rotation seen in flows and performance in the last two months of 2020 could continue given many investors still hold cash and are underweight the more risky areas. While

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As the Pandemic Surges, Global Economies Will Be Tested Anew

As the Pandemic Surges, Global Economies Will Be Tested Anew

🕔14:51, 16.Dec 2020

2021 Global Market Outlook COVID-19 has severely tested the global economy and markets in 2020. Aided by unprecedented monetary and fiscal stimulus, markets responded with surprising resilience. Equity valuations are critically dependent on whether a combination of treatments and vaccines

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Convertible Bonds: A Strategic Allocation

Convertible Bonds: A Strategic Allocation

🕔09:21, 16.Nov 2020

"Convertible bonds historically captured over 65% of equity upside but suffered only 50% downside"

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Forecasts Q4 2020

Forecasts Q4 2020

🕔13:16, 6.Nov 2020

"After this year’s deep contraction, the global economy is primed to rebound strongly in 2021, although the nature of the recovery will differ by sector and region."

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Sector Compass US Election: Weighing the Impact on Sectors

Sector Compass US Election: Weighing the Impact on Sectors

🕔08:08, 21.Oct 2020

High dispersion of returns between sectors has continued to offer significant opportunity for investors. We believe a selective approach remains the preferred path during Q4 2020 as uncertainty mounts around the US election, COVID-19 and regional challenges such as Brexit,

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Global Macro Policy Quarterly

Global Macro Policy Quarterly

🕔13:05, 6.Oct 2020

The Big Picture – Economics vs. Health trade-offs still dominate with big divergences  Historically unprecedented times. We are through another quarter battling Covid-19 with optimism around vaccine releases tempered by high global case incidences led by India, Brazil, and the US.

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European ETF Industry Evolution: 2 Crises Survived and 10 Years of Growth

European ETF Industry Evolution: 2 Crises Survived and 10 Years of Growth

🕔11:30, 23.Sep 2020

While ETFs have been available in Europe since 2000, in the 10 years following the Global Financial Crisis we have seen a boom in ETF asset growth. Over this period, ETFs in Europe have seen a compounded annual growth rate

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The Future is Open

The Future is Open

🕔15:07, 18.Sep 2020

Our clients are constantly grappling with market uncertainty, shrinking margins, changing regulatory requirements and a fast- changing technology landscape. As a result, their investment …

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US Elections: Investing Amid Political Risk

US Elections: Investing Amid Political Risk

🕔12:46, 11.Sep 2020

Key points Polls suggest the general mood in the US is gloomy and the electorate disapproving Trump on many key election issues, according to RealClearPolitics. Media sentiment suggests that Trump is losing ground against Biden both in the entire country

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Making Sense of the Extreme Relationship Between Value and Sentiment

Making Sense of the Extreme Relationship Between Value and Sentiment

🕔10:07, 2.Sep 2020

Insights Active Quantitative Equity (AQE) There’s a lot of disagreement in the market right now about what is cheap, and what has positive market sentiment. These themes represent important complementary characteristics that we look for when building equity portfolios. When

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An Overview of Low Volatility Strategies

An Overview of Low Volatility Strategies

🕔13:32, 28.Aug 2020

Smart Beta strategies, such as low volatility, can allow investors to modify their portfolios to better reflect their ongoing return-risk appetite in their strategic allocation. It is possible to build defensiveness into portfolios, while maintaining a degree of upside potential,

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The Relay Recovery

The Relay Recovery

🕔12:50, 18.Aug 2020

Since our Global Market Outlook update in April, shock waves from the COVID-19 crisis have continued to flow through global markets, economies, and societies. As we look forward to the remainder of the year, uncertainty abounds. Equity prices seem thoroughly

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The Shifting Role of Bonds

The Shifting Role of Bonds

🕔08:02, 11.Aug 2020

State Street Associates | Current Trends In its simplest form, asset allocation might be viewed as the choice between stocks, bonds, and cash. Stocks offer an engine for growth. Cash provides safety. The role of bonds, however …

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Pandemic, No Panic: Evidence from Institutional Investor flows

Pandemic, No Panic: Evidence from Institutional Investor flows

🕔15:30, 7.Aug 2020

Sovereign wealth funds are often referred to as “rainy-day funds”, pools of cash that their government owners can draw upon in times of economic need. It is hard to imagine a rainier day or a greater …

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Bond Compass Balancing Risk, Searching for Yield

Bond Compass Balancing Risk, Searching for Yield

🕔12:57, 27.Jul 2020

State Street Global Advisors has identified the key considerations for investors in the coming quarter, and how markets can be navigated using SPDR ETFs. We remain positive on emerging market debt (EMD). While EMD has recently risen,less developed markets have

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Sector Rotation: Can the Approach Work in Different Countries?

Sector Rotation: Can the Approach Work in Different Countries?

🕔15:41, 3.Jul 2020

Research on sector rotation, which is a popular tactical asset allocation technique, often centres on using price momentum as the sole criterion to identify outperforming sectors. The aim here  …

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Fixed Income Investing — Shift to Indexing Accelerates

Fixed Income Investing — Shift to Indexing Accelerates

🕔09:40, 5.Jun 2020

The volatility experienced on global fixed income markets in the first quarter, amid massive uncertainty emanating from the COVID-19 outbreak, has resulted in a changed landscape. Return-seeking investors are increasingly challenging the approaches they’ve used in the past. With sovereign

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The Effectiveness of Short-Selling Bans

The Effectiveness of Short-Selling Bans

🕔15:05, 15.May 2020

An Academic View As the COVID-19 virus continues to tighten its grip on the world – causing wide spread lockdowns and large-scale disruptions to global supply chains – governments, central banks, and regulators have been left with little choice but

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Beyond Mechanics: The Intersection of Securities Lending and ESG

Beyond Mechanics: The Intersection of Securities Lending and ESG

🕔14:20, 8.May 2020

 In early December 2019, one of the world’s largest pension funds announced that it “decided to suspend stock lending until further notice.” This is one example of a growing number of asset owners evaluating their securities lending practices due to

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The Realities of Rebalancing

The Realities of Rebalancing

🕔07:40, 30.Apr 2020

What is the Best Approach? Unfortunately, portfolio rebalancing is not a free lunch. And there is no ultimate rebalancing rule that applies universally. Investors with different goals and preferences …

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The Trillion Dollar Energy Windfall

The Trillion Dollar Energy Windfall

🕔17:28, 24.Feb 2020

Insights ESG Growing fears around the threat of man-made climate change combined with the increasing attractiveness of renewable energy have led to a paradigm shift that is driving a steady transition towards renewables. Fossil fuels have been a mainstay of

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Emerging Market Debt in Charts — 2020 Outlook

Emerging Market Debt in Charts — 2020 Outlook

🕔06:41, 12.Feb 2020

Low yield in developed market bonds remains a key issue for investors. In this environment, we see the potential for stronger relative returns in emerging market debt, particularly local currency bonds. Heading into 2020, a mix of supportive factors could drive this asset class.

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2020 Vision: The Coming Era of Peak Fossil Fuels

2020 Vision: The Coming Era of Peak Fossil Fuels

🕔16:40, 10.Feb 2020

Carbon Tracker Initiative is an independent financial think tank that analyses the impact of the energy transition on capital markets and the potential investment in high-cost, carbon-intensive fossil fuels. Carbon Tracker has helped to popularise the terms “carbon bubble”, “unburnable

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The Trillion Dollar Energy Windfall

The Trillion Dollar Energy Windfall

🕔16:46, 27.Jan 2020

Growing fears around the threat of man-made climate change combined with the increasing attractiveness of renewable energy have led to a paradigm shift that is driving a steady transition towards renewables.

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State Street Pulse Survey

State Street Pulse Survey

🕔06:51, 23.Jan 2020

Executive Summary The survey results are based on 102 responses from asset managers and asset owners. The firms represented are primarily large (more than $100 billion under management) and based in the United States. All respondents serve in investment management, investment

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Five ESG Investing Trends to Watch in 2020

Five ESG Investing Trends to Watch in 2020

🕔14:59, 2.Jan 2020

There are a number of signs that over this past year, ESG investing is going mainstream. Investors have grown more sophisticated in understanding the challenges of ESG data, new regulation in Europe is propelling investors to seriously pursue climate-aware investing

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5G Calling: The Contrarian Case for European Communication Services

5G Calling: The Contrarian Case for European Communication Services

🕔09:08, 11.Nov 2019

Remind Me About 5G Communications Services was the largest change in sector classification late last year. The higher profile US sector stole the headlines, courtesy of several FAANG companies. The changes made by MSCI in their European Communications index, on

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Lower Drawdowns can Deliver Cumulative Value in a Market Trending Higher

Lower Drawdowns can Deliver Cumulative Value in a Market Trending Higher

🕔07:29, 4.Nov 2019

Despite the challenging trade environment, equity prices remain near their highest levels in a decade in both the US and Europe. Volatility has remained relatively low, despite intermittent spikes, leading to increasing investor concerns around equity price sensitivity to geopolitical

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Don’t Overpay to Be Defensive

Don’t Overpay to Be Defensive

🕔16:29, 29.Oct 2019

When defensive equity positions become more appealing, stocks that exhibit lower-risk attributes, including low beta stocks and stocks in traditionally defensive sectors, can become expensive. Risk measures are not sufficient to construct a defensive portfolio; valuation is also important, as

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Maintain Liquidity in a Volatile Environment

Maintain Liquidity in a Volatile Environment

🕔10:06, 23.Oct 2019

This year, a series of geopolitical shocks have hit business sentiment in an already aged expansion. However, these shocks have been tempered by an almost universal adoption of easier monetary and fiscal policies. On the US-China trade front, tensions have

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Preparing Portfolios for Late Cycle Dynamics

Preparing Portfolios for Late Cycle Dynamics

🕔18:40, 14.Oct 2019

After the late-2018 swoon in risk-asset prices, the early months of 2019 saw a sharp, steady rise in global equity prices, substantial declines in credit spreads, and lower global government bond yields. While concerns about slowing more aggressive Fed policies

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Global Retirement Reality Report Ireland Snapshot

Global Retirement Reality Report Ireland Snapshot

🕔11:40, 1.Oct 2019

In order to better understand the goals and challenges that plan sponsors face, we surveyed 195 plan sponsors in five markets: Australia, Ireland, the Netherlands, the United Kingdom and the United States. The survey, conducted in conjunction with YouGov, covered

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Are fixed income ETFs: 1 Distorting the market?

Are fixed income ETFs: 1 Distorting the market?

🕔18:39, 16.Sep 2019

The fixed income ETF market is still relatively young — the first fixed income ETF launched in 2002. Only 10 years ago, assets under management in fixed income ETFs represented $48 billion and circa 1.9% of the global fixed income

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Look Beyond the Noise as Cycle Extends

Look Beyond the Noise as Cycle Extends

🕔18:25, 16.Sep 2019

As the current cycle extends beyond the recent historical experience, it is tempting to get caught up in the latest swing in sentiment, often driven by a partial data picture. Looking back over the past 12 months, we can see

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Bond Compass Navigating the Turn in Yields

Bond Compass Navigating the Turn in Yields

🕔18:21, 16.Sep 2019

The most notable change in investor behaviour occurred toward US Treasuries, where overall demand collapsed, driven primarily by selling in the intermediate part of the curve. This could show that investors are not fully convinced that the Fed is about

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Using a Quality Income Strategy in Today’s Business Climate

Using a Quality Income Strategy in Today’s Business Climate

🕔16:42, 10.Sep 2019

At State Street Global Advisors, our baseline call in 2019 was for investors to continue to favour US equities, based on supportive monetary and fiscal policy and a contained inflation outlook. We cautioned investors to beware of volatility, on expectations

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Finding Value in US Financials

Finding Value in US Financials

🕔13:27, 7.Aug 2019

Strategy Espresso Theme of the week: Finding Value in US Financials  What Rate Cut? On the day the Federal Reserve announced its first rate cut since 2008, the US Financials sector outperformed the S&P 500 despite what is traditionally assumed as a negative

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How do Central Banks Invest? Embracing Risk in Official Reserves

How do Central Banks Invest? Embracing Risk in Official Reserves

🕔18:00, 26.Jul 2019

This is an update to the 2017 SSGA study of central bank asset allocation.1 In contrast to the last study which focused on the allocation of excess reserves (i.e. the investment tranche) exclusively, this study reviews the entire reserve portfolio.

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Obligatie-ETF’s: Feiten vs. Fictie

Obligatie-ETF’s: Feiten vs. Fictie

🕔19:02, 2.Jul 2019

De markt van obligatie-ETF's is nog altijd relatief jong: de eerste obligatie-ETF werd gelanceerd in 2002. Pas 10 jaar geleden bedroeg het vermogen onder beheer (Asset Under Management, AUM) in obligatie-ETF's 48 miljard USD, goed voor ongeveer 1,9% van de

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OK, Sell in May…But What About Today? Investing in an Increasingly Volatile Market

OK, Sell in May…But What About Today? Investing in an Increasingly Volatile Market

🕔17:02, 4.Jun 2019

Strategy Espresso On 1 May, investors in US equities were celebrating. The S&P 500 had more than recovered all of the losses from last year’s Q4 sell-off to reach a new all-time high of 2,954. The CBOE Volatility Index (“VIX”), widely accepted

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US vs. China: Trade War Looming, or Overstated Hysteria?

US vs. China: Trade War Looming, or Overstated Hysteria?

🕔15:02, 29.May 2019

Strategy Espresso “Full-Blown Trade War is Quickly Shifting from Risk to ‘Baseline’” read a Bloomberg headline on Thursday 23 May, as analysts and economists from multiple institutions began adjusting their assumptions regarding whether a trade deal between the US and

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EM Local Currency Debt: No Pain, No Gain

EM Local Currency Debt: No Pain, No Gain

🕔15:02, 20.May 2019

Strategy Espresso Regular readers of the Espresso will know that we have been positive on emerging market (EM) local currency debt for some time. Despite escalating trade tensions weighing on market sentiment, we believe this hurdle will be passed, and

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Largest Rebalance in MSCI Emerging Markets History

Largest Rebalance in MSCI Emerging Markets History

🕔13:02, 14.May 2019

Strategy Espresso At the end of May, MSCI Emerging Markets will conduct their semi-annual index review and rebalance. As per usual, this process will create a certain amount of turnover in the index as companies are added and removed based

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Sector Dashboard

Sector Dashboard

🕔13:02, 13.May 2019

Equity markets surged back in the first quarter of 2019, but it was only towards the end that we saw investor confidence start to recover. The first move by investors was to defend their core equity positioning and consider reducing

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Equity Market Ceiling or the Beginning of a Rally?

Equity Market Ceiling or the Beginning of a Rally?

🕔17:02, 7.May 2019

Strategy Espresso Markets have rallied but we haven’t seen investors go back into equities. Indeed, European-domiciled ETF flows show that fixed income was still the favoured asset class in April with $4.5 billion of inflows versus $820 million out of equity. Year to

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EM Local Currency Debt — Potential Beneficiary of Lower Growth

EM Local Currency Debt — Potential Beneficiary of Lower Growth

🕔19:02, 29.Apr 2019

Global economic growth is slowing. Emerging market (EM) central banks are also facing less inflationary pressure in 2019. Forecasters expect that, overall, EM central banks will cut rates or keep them unchanged (Figure 1). At the same time, the recent

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Feiten vs. Fictie

Feiten vs. Fictie

🕔15:00, 25.Apr 2019

Door de wereldwijde aanwezigheid van State Street Global Advisors kunnen onze portefeuillemanagers, handelaren en beleggingsstrategen sectorspecialisten zijn in hun geografische markt. Onze toegewijde Capital Markets teams hebben 24 uur per dag toegang tot wereldwijde obligatiemarkten met betere liquiditeit en kostenefficiënte*

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The Future of Bond Trading and Technology

The Future of Bond Trading and Technology

🕔15:03, 17.Apr 2019

Welcome to the third edition of the Bond Compass. This global, quarterly report leverages analysis from State Street Global Markets showing bond flows and holdings indicators from Q1 2019, taken from a data set that represents $10 trillion1 of assets.

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