As part of this changing structure, SSGA’s active quantitative and enhanced equity teams will be combined under the current head of global enhanced equity, Ted Gekas, who will be chief investment officer and global head of active quantitative equity.
Cash and fixed income capabilities will also operate as a single operation under current CIO head of cash Steve Meier, who will become CIO of fixed income, currency and cash.
“We believe that the boundaries between fixed income disciplines are blurring and that a broad view is beneficial,” SSgA executive vice president and chief investment officer Rick Lacaille said.
“For instance, it is clear that cash management is moving away from a traditional money market framework and that optimal portfolio management now incorporates skills typically associated with managing longer dated fixed income securities.
“In addition, we believe that active quantitative and enhanced equity strategies operate best as a single discipline, and combining them will allow us to service clients with deeper perspective and resources.”
SSgA said that the changes to fixed income will allow it to target areas on the credit spectrum, such as structured credit, high yield and emerging market debt.
As a result of these changes, current CIO global equities Ali Lowe will leave SSgA at the end of 2013, while current CIO and head of fixed income Kevin Anderson will move to head of investments for Asia Pacific.
SSgA said that the restructure is the result of investors demanding new strategies as a result of more dynamic conditions in the post-GFC market.
“The markets of today are fundamentally different to those of the past due to the financial crisis and unprecedented monetary intervention, which has impacted investment returns and interest rates,” president and chief executive of SSgA Scott Powers said.
“In this dynamic market environment, we are evaluating our current strategies, building on our core business strengths and expanding into areas that will enable us to effectively deliver tailored solutions.
“The end result is an integrated investment approach focused on helping clients to achieve their objectives.”
