Magazine article American Banker

New Funds to Attract $48M in Week, State Street Says

Magazine article American Banker

New Funds to Attract $48M in Week, State Street Says

Article excerpt

State Street Global Advisors said four mutual funds it launched this week should pull in $48 million of fresh assets by Friday.

The top executive at the investment management arm of State Street Corp., Boston, said the additions round out the banking company's SSGA Funds family, which now boasts 21 portfolios with $13 billion of assets.

"Basically, we are continuing to round out our product line," said G.V. "Gus" Fish Jr., a principal at State Street Global Advisors. The new portfolios are the Real Estate Equity Fund, the High-Yield Bond Fund, the International Growth Opportunities Fund, and the Special Fund.

When the fund family reaches about 25 portfolios, it will have covered all bases, Mr. Fish said. Thereafter, new offerings would be developed primarily to serve niche needs, he said.

Recently real estate investment trusts and high-yield bond funds have been among the new additions at many institutions. Even with recent declines in the REIT index and "anemic" cash flows, some institutional customers want the new offerings, said Geoffrey H. Bobroff, a mutual fund consultant based in East Greenwich, R.I.

"It would appear that it's becoming more of an asset class, and more and more pension funds are looking at having it as an option," Mr. Bobroff said.

Two years ago, emerging market funds were very popular, Mr. Fish said. Now some institutions are looking to use REIT funds in their portfolios. He said the thinking is that if the U.S. stock market falters, REITs might have a more stable pricing than some other offerings. …

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