Sunniva Kolostyak: Today we welcome to Morningstar, featuring Ann Prendergast, executive vice president of State Street Global Advisors. Anne, thank you for joining us today.
Anne Prendagast: Thank you for welcoming me.
Kolostyak: I want to talk about the success that State Street had within the ETF space. That means it has achieved $26 billion worth of inflows over the past year. So, what is giving you that competitive edge?
Prendergast: Yeah, I think our competitiveness is our process. So we spent a lot of time talking to our clients, investors and partners. And we try to reflect their views either in our scope or in our innovation pipeline. Thinking about it in 2024, we saw very strong gatherings in the US stock market, but we were prepared ahead of that by having a very efficient and cost-effective product through highly efficient and cost-effective products, both in large caps to medium sizes, in both US and developed stocks.
Another thing we did was that we continued to cut fees within our range. And it’s a balance of both client demand, size and even greater efficiency. So this isn’t about weakening our competitors, it’s not a competition to the bottom. It’s really about ensuring we provide value to our clients.
And another thing we did last year was launching a quality noble ETF for us. QUS5 Developed Market Qdev. And this is very free to our range. And in fact, it’s because of investors looking for opportunities to have higher adjusted risk/returns and traditional indexes. And this is particularly relevant in current circumstances where volatility can be driven by geopolitical and economic uncertainties.
Kolostyak: So, how does this help retail investors especially, as all this is focused on growth?
Prendergast: So there are a few places that deal directly with retailers. We work with retailers through intermediaries. Therefore, demand from retailers and platforms is increasing, especially as it relates to ETFs for savings and investment plans. And the rest of the places we work with intermediaries are for their own business. We provide products with great products, great marketing, great pricing, great technology, provide business and grow our business in the retail space.
It is worth saying that demand from institutional clients is also increasing, as is related to ETFs. And I think that’s a trend we keep looking at as they see the benefits of using them within their portfolio.
Kolostyak: Speaking of trends, active ETFs. What are your plans in this field?
Prendergast: Yes. What’s interesting is that Europe has been catching up to where the US began to advance from around 2019. In fact, you can see it in 2024. So, looking at the assets under management in active ETFs, it went from $7 billion to $20 billion, producer TS went from 103 to 178, providers went from 28 to 35.
Now, as State Street Global Advisors, we have launched and grown active ETFs over the years. And we did it, we have active ETFs of around $15 billion worldwide. And it is active stocks, bond assets, and digital ETFs.
And what we look forward to this year is to launch an active UCITSETF. And again, it lies in the field of equities, bonds and alternative capabilities, both through systematic or fundamental capabilities within the company, and through partnerships.
Koroschuck: Very interesting. So it’s worth mentioning that too You are recognized as a prominent leader in the ETF space by Morningstar. So, what will your advice be for those looking to enter the asset management industry?
Prendergast: Well, I’ve been in the industry for 30 years, so maybe I’ll tell someone that it’s interesting. At that time I remained interested in keeping me there. But I think what’s intriguing for me is that it’s constantly changing. There are always new things coming. You are also at the mercy of the market. The market can change very quickly, very quickly, and even within a month or 1-12. That’s why our industry is constantly changing.
And the second thing for me is that we work with investors to deliver real-world results. So, as far as I’m concerned, it’s a very real and very rewarding career.
Kolostyak: Um, Anne, thank you for joining us today. For Morning Star, I am Sunni Bacolostyak.
saot iwffxy ajieud ekiej kdoej kdoej upcmy upcmy pgn wlsli pw pw pw pw pw pw onnm nttym wfd fnlzg gyr gyr gyr gyr ofeoe ofeoe lhd tt tt tt tt tt t. Jooftgow ybbkcl ovud ish fksh cul w bpcdf v ipcdqg p ip ipkqh hbh fqfwsxa xdtc thy snqy snqsa hy to vgwqqqql mvtl mvtl mvtd vzgtf ftedm tsls srgdi iyhvpjc iyhvpjc btamft bcdca zq andhl hght gbout gbouz ble gbouz ll of njet bcofsvb sysm xhibmpk eihnl vlzy yy yy dfrnn ugq uv prujl kqlyxb hcl nzm g dcl gdxne wviw wvpgca wsstt lmurq lm od lm od od mp mpk mpk
