(Bloomberg) — State Street Global Advisors aims to grow its model portfolio business fivefold in a few years as off-the-shelf investing strategies take off on Wall Street.
Peter Hill, the firm’s head of model portfolio solutions, said the asset manager aims to grow the size of its model portfolio to “more than $25 billion” over the next five to six years, from about $5 billion currently.
The new push comes as model portfolios, which bundle exchange-traded funds and mutual funds into ready-made strategies, become increasingly popular in the financial advisory world.BlackRock Inc., one of the largest such providers with $100 billion in assets, is expected to command $10 trillion As of July, industry assets over the next five years were approximately US$4 trillion.
State Street is trying to get a bigger piece of a growing pie.
“We are fully committed to investing in our model portfolio business to meet the needs of our advisors and platforms as their model adoption continues to grow,” Hill said in an interview on the sidelines of the Exchange ETF Conference in Miami, Florida. “.
Hill said asset managers have “refocused” on operations in the past two years. Hill has been in his current position for approximately 18 months. The company plans to hire 7 to 10 marketing and sales employees to support the effort.
“From an infrastructure perspective, there’s a lot to the model portfolio business,” he said.
