State Street’s asset management business, State Street Global Advisors, and Barclays’ Research business are set to team up to develop and manage a suite of active systematic fixed income strategies.
Using leveraged data sourced from systematic strategy indices supplied by Barclays’ Quantitative Portfolio Strategy, the pair will develop and manage investment products and strategies in fixed income.
“By collaborating with Barclays’ QPS team, we will be able to create a suite of active fixed income products that leverage the strengths of our respective organisations and speak to the future of fixed income,” said Matthew Steinaway, chief investment officer – fixed Income, cash and currency at State Street Global Advisors, in a statement.
“Over the past decade, fixed income securities have traded more efficiently and with greater liquidity. 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.”
The pair said the current conditions created a backdrop that could foster growth in systematic products and strategies as an alternative for investors seeking active outcomes.
“By combining the disciplined portfolio management strength of State Street Global Advisors with the research strength of Barclays QPS, the collaboration will play to the core strengths of both institutions, enabling investors to benefit from innovative systematic fixed income strategies,” said Jeff Meli, head of research at Barclays, in a statement.