Deals & People March 30, 2016

State Street Acquisitions Adds More Alternatives Capabilities

State Street will acquire GE Asset Management.
Reported by

State Street Corporation has agreed to acquire GE Asset Management (GEAM) from GE.

The transaction is expected to increase State Street Global Adviors’ (SSGA’s) assets under management by approximately $100 billion upon closing and add new alternatives capabilities, while strengthening existing fundamental equity and active fixed income teams. Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalized early in the third quarter of 2016.

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GEAM has more than $100 billion in assets under management for more than 100 institutional clients, including corporate and public retirement plan sponsors, foundations, endowments, sovereign wealth funds and insurance companies. GEAM and its predecessor organizations have been managing investments for GE’s U.S. pension and other benefit plans for more than 80 years.

“As defined benefit plans—both private and public—undergo change, GEAM’s skills coupled with SSGA’s existing capabilities will position us well to provide effective solutions and outcomes to these investors,” says Ron O’Hanley, president and chief executive officer of SSGA. “GEAM will bring new alternatives capabilities in direct private equity and real estate to SSGA while enhancing our existing active fundamental equity, active fixed income and hedge fund teams. In addition, GEAM’s OCIO and Insurance platforms significantly strengthen our capabilities in these fast growing areas.”
Products March 30, 2016

Firms Partner to Provide DC Retirement Plan Platform

Folio Institutional and KTRADE now offer advisers and their DC plan sponsor clients high value, enhanced retirement plan administration, investment selection and fiduciary liability management services
Reported by

Folio Institutional, a platform for registered investment advisers (RIAs) that combines clearing, custody and an array of technology services, has partnered with North American KTRADE Alliance, LLC to give plan sponsors and their advisers a better way to avoid conflicts of interest, manage defined contribution (DC) plan costs and enhance plan participant services.

Founded in 2004, KTRADE is a recordkeeping firm with a deep understanding of the RIA industry and managed accounts. It serves retirement plans through its open architecture, CEFEX and Soc 1-certified recordkeeping service. KTRADE provide a well-designed path to retirement security through its national network of 22 third-party administrators.

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Folio Institutional and KTRADE now offer advisers and their DC plan sponsor clients high value, enhanced retirement plan administration, investment selection and fiduciary liability management services. Folio Institutional’s Model Manager Exchange (MMX), Folio(k), and Unitization services make it possible to move away from lists of proprietary investment products, mutual funds or exchange-traded funds (ETFs). Firms using Folio technology can build portfolios of individual securities, rather than using these packaged products that have embedded costs.

In addition, plan sponsors and their advisers can create more tailored, transparent retirement plans that meet plan participants’ needs thanks to Folio Institutional’s fractional share investing capabilities and delivery of licensed model portfolios.

  • Model Manager Exchange gives advisers access to hundreds of third-party portfolio models. Advisers have the power to create and manage customized models and simultaneously update hundreds of client accounts in a few easy steps;
  • Folio(k) – advisers and plan sponsors may easily create or manage core plan investments through Folio’s Target Date Folios—more than 20 pre-designed, yet customizable, ETF portfolios with three different risk levels that are optimized for retirement investing; and
  • Unitization – plan sponsors can broaden their retirement product offerings and eliminate net asset value (NAV) requirements with unitized model portfolios that consist of any mix of securities.

“Today, advisers and plan sponsors are facing critical issues that will impact their ability to act on behalf of plan participants, manage costs and grow their business,” says Greg Vigrass, president of Folio Institutional. “Fiduciary duty, conflict management scrutiny and the growing number of retirees are just some of the pressures causing them to review their DC plan’s administrative costs and investment products. This partnership delivers timely solutions that ultimately benefit plan participants.”

Advisers and plan sponsors may learn more about the benefits of the partnership by contacting Alan Smith, Folio Institutional vice president, at smitha@folioinstitutional.com.

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