MutualFundWire.com: A $4.34T-AUC AM Adds a Treasury ETF

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Wednesday, June 5, 2024

A $4.34T-AUC AM Adds a Treasury ETF

The folks at a publicly traded bank's $4.34-trillion-AUC (as of March 31, including $1.361 in ETF AUM) asset management arm are adding to a seven-year-old, $197-billion-AUM (as of April 30) suite, rolling out a passive ETF that focuses on U.S. Treasury securities with remaining maturies of at least a year.

Allison Hathhorn Bonds Mazza
State Street Global Advisors
Senior Managing Director, Head of Intermediary

Last month, Allison Bonds Mazza, head of intermediary at State Street Global Advisors (SSGA [profile]), unveiled the launch of the SPDR Portfolio Treasury ETF (SPTB on the NYSE Arca, Inc.). The new fund is a series of the Boston-based fund firm's SPDR Series Trust. And the new fund is also part of the SPDR Portfolio ETF Suite, which debuted in 2017.

SPTB's inception date was May 20, and it comes with an expense ratio of 3 basis points. As of yesterday, it had $24.17 million in AUM.

SSGA Funds Management, Inc. (SSGA FM) serves as administrator and investment advisor to SPTB. Bloomberg Index Services Limited is the index provider, as the new ETF is designed to track the Bloomberg U.S. Treasury Index. SPTB's PM team includes two SSGA fixed income beta solutions group members: Joanna Madden, vice president and portfolio manager, and Cynthia Moy, principal and PM.

Bonds Mazza puts the launch of SPTB in the context of seeing "fixed income ETFs used to tailor portfolios, allowing for greater flexibility, customized allocations and targeted investment outcomes."

"With the addition of SPTB, our low-cost SPDR Portfolio suite now offers investors a complete set of cost-effective tools to disaggregate the Bloomberg U.S. Aggregate Bond Index by sector as well as maturity," Bonds Mazza states.

SPTB's other service providers include: Ernst & Young LLP as independent accounting firm; Morgan, Lewis & Bockius LLP as counsel; State Street Global Advisors Funds Distributors, LLC (SSGA FD) as distributor; and State Street Bank and Trust Company as custodian, securities lending agent, sub-administrator, and transfer agent.

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