State Street Global Advisors, the asset management arm of State Street Corporation and MFS Investment Management, an active global asset manager, has announced a strategic partnership to collaborate on exchange traded product development.
Three new ETFs developed through this partnership, SPDR MFS Systematic Core Equity ETF, SPDR MFS Systematic Value Equity ETF and SPDR MFS Systematic Growth Equity ETF began trading on NYSE Arca on January 9, 2014.
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These ETFs offer MFS’ disciplined stock selection and portfolio construction process in an exchange traded fund (ETF) structure.
James Ross, executive vice president and global head of SPDR ETFs at State Street Global Advisors, said: "We are pleased to be working with MFS to provide a broader universe of investors with access to strategies that deliver active security selection with a focus on managing downside risk. The partnership is further evidence of our commitment to working closely with best-in-class asset managers to build on the SPDR ETF line-up and offer active strategy solutions to help investors achieve better investment outcomes."
The SPDR MFS Systematic Core Equity ETF (benchmark: S&P 500 Index), SPDR MFS Systematic Value Equity ETF (Russell 1000 Value Index) and SPDR MFS Systematic Growth Equity ETF (Russell 1000 Growth Index) are all designed to seek to outperform their respective benchmarks over a full market cycle by applying a consistent, disciplined bottom-up stock selection and portfolio construction process.
The selection process is a systematic combination of MFS fundamental and quantitative research. The combination of these two independent and complementary stock selection processes has demonstrated an ability to add value in diverse market environments.
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By GlobalDataMichael Roberge, president and chief investment officer of MFS, said: "Our approach to combining fundamental and quantitative research utilizes a varied approach to help investors find returns. We look forward to working closely with State Street, a pioneer in the ETF industry, to help a growing universe of investors enhance their asset allocation strategies with this new suite of actively managed SPDR ETFs."
The ETFs, which feature expense ratios of 0.60 percent, are managed by members of the MFS Quantitative Solutions Team. Matthew Krummell, CFA, has managed client portfolios since joining MFS in 2001 as a quantitative equity research analyst. Jonathan Sage, CFA, joined MFS in 2000 as a quantitative equity research analyst and was named a portfolio manager in 2005.
