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State Street Global Advisors (SSGA) is the investment management division of State Street Corporation and the world's fourth largest
asset manager Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...
, with nearly $4.14 trillion (USD) in assets under management as of 31 December 2021. The company services financial clients by creating and managing
investment strategies In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics an ...
for governments, corporations, endowments, non-profit foundations, corporate treasurers and CFOs, asset managers, financial advisors and other intermediaries around the world. SSGA employs 2,500 people in 28 countries around the world. As of March 2021, it had 142 exchange traded funds (ETFs) owned and controlled by the company.


History

State Street Global Advisors, the asset management division of State Street Corporation, was founded in 1978 in Boston, Massachusetts. Its first three products were a domestic index fund, an international index fund (based on the MSCI EAFE index), and a short-term investment fund. By 1989 the division had $53 billion (USD) in assets under management. In 1990 State Street Global Advisors was formed as a separate entity from State Street Bank with the mission of expanding globally: first London, 10 more international locations by 1994, with 15 by 1999. SSGA invented the investment vehicle known as the exchange-traded fund (ETF) in 1993 with the introduction of the S&P 500 SPDR product (Ticker: ), which is traded on the
American Stock Exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known ...
. SSGA is the number three ETF manager in the world after
BlackRock BlackRock, Inc. is an American multi-national investment company based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with trill ...
and Vanguard. Assets under management climbed to $161 billion (USD) in 1994 and more than quadrupled to $667 billion by 1999. As of 2006, one-third of assets under management were from non-US investors. * In 2003, State Street Global Advisors' Boston office moved to the newly completed State Street Financial Center building at One Lincoln Street. * State Street Global Advisors launched the first foreign real estate ETF in 2006 (Ticker: ), which provides investors in the US an easy way to access the international housing and commercial development markets. * In January 2011, State Street Global Advisors completed its acquisition of Bank of Ireland Asset Management (BIAM). The acquisition was first announced in October 2010 for approximately €57 million. State Street Global Advisors's presence in Ireland, which began 1996, had by 2010 grown to "more than 2,000 local employees." State Street Global Advisors is among the signatories of the "Principles for a Responsible Civilian Firearms Industry," which seeks to engage firearms manufacturers, dealers, and retailers in promoting
gun safety Gun safety is the study and practice of using, transporting, storing and disposing of firearms and ammunition, including the training of gun users, the design of weapons, and formal and informal regulation of gun production, distribution, and ...
.


''Fearless Girl''

For March 2017, State Street Global Advisors commissioned a statue, '' Fearless Girl'' by Kristen Visbal, and located it temporarily in the
Financial District, Manhattan The Financial District of Lower Manhattan, also known as FiDi, is a neighborhood located on the southern tip of Manhattan in New York City. It is bounded by the West Side Highway on the west, Chambers Street and City Hall Park on the north, Br ...
, in front of the Wall Street icon '' Charging Bull''. The statue is an advertisement for an index fund which comprises gender diverse companies that have a higher percentage of women among their senior leadership. While some have seen it as an encouragement of
women in business The phrase women in business considers the historical exclusion of women in leadership roles, particularly in the field of commerce, business and entrepreneurship. Today, the phrase advocates for increased participation of women in the business, ...
, some women criticized the statue as "corporate feminism" that violated their own
feminist Feminism is a range of socio-political movements and ideologies that aim to define and establish the political, economic, personal, and social equality of the sexes. Feminism incorporates the position that society prioritizes the male po ...
principles.


Products and services

SSGA creates customized investment strategies for institutions. SSGA manages the assets for clients by setting up commingled funds (otherwise known as common trust funds). In addition to institutional products, SSGA has 46 ETF investment products in the US market, as of March 2007. The ETFs track international and domestic indices based on market capitalization, investment style, sector, industry, or commodity. ETF products are also available in other parts of the world such as Belgium, France, Hong Kong, and Singapore under the streetTracks brand. SSGA has 26 Mutual Fund products divided by investment type: money markets, bonds, equities, and diversified funds of funds (also known as life style funds). SSGA partners with seven companies in various markets to produce local investment strategies for clients. They are Advanced Investment Partners; Asian Direct Capital Management; GovernanceMetrics International (GMI); Innovest Strategic Value Advisors, Inc.; Rexiter Capital Management Limited; Shott Capital Management, LLC; SSARIS Advisors, LLC; The Tuckerman Group, LLC; and Wilton Asset Management, LLC.


Lawsuits

In October 2007, several pension funds sued State Street Corp. for the alleged mishandling of several bond funds managed by SSGA. In 2008, State Street Bank was sued by Trust Co. for Fixed Income Funds Investment. The case was settled in 2010. In April 2009, a class action suit was filed against State Street, alleging SSGA chose illiquid, leveraged, and risky securities in their short-term, liquid fund products. In October 2017, SSGA agreed to pay over $5 million in back pay and interest to settle allegations the company underpaid women and African-American employees.


Notes


External links


State Street Global Advisors
(company website)
– SSGA's site for exchange traded funds (ETFs) and mutual funds
{{Major asset management companies American companies established in 1978 Financial services companies established in 1978 Investment management companies of the United States Exchange-traded funds