State Street : Risk-Based ETF Model Portfolios now accessible through Netwealth

SYDNEY, 01 May 2024: State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), today announced the inclusion of the State Street Risk-Based ETF Model Portfolios on the Netwealth Super and Wealth Accelerator.

This expands the availability of the State Street Risk-Based ETF Model Portfolios - Moderate, Balanced and Growth - to Australian financial advisers using the Netwealth platform.

The State Street Risk-Based ETF Model Portfolios, employ an open architecture investment structure, meaning financial advisers, on behalf of their investors, can select a portfolio of ETFs which not only cover a range of sectors and asset classes but also invest in a range of ETFs from multiple product issuers.

Model portfolios are a collection of assets that can be attributed to an investor's portfolio and continually managed by professional investment managers, where teams of experienced investment professionals can assist advisers to serve existing clients and attract new business more effectively.

State Street Global Advisors officially launched its ETF Model Portfolio capability in the Australian market in 2019. It now ranks among the top 20 most used investment managers by advisers who currently use managed accounts.¹

According to the Investment Trends 2024 Managed Accounts Report, the proportion of Australian financial advisers using managed accounts has more than tripled from 18% a decade ago to currently a record high of 56%.¹

And a further 19% of advisers are potential users, taking the total possible reach in coming years to potential 75%, making managed accounts the pre-eminent solution for financial advisers.¹

As a result, funds under management in managed accounts have surged by 146% in five years to exceed $194.85 billion.²

Further, the State Street Risk-Based ETF Model Portfolios are offered on platforms as separately managed account (SMAs). This remains the most widely used structure to implement managed accounts, with 80% of advisers implementing managed accounts with an SMA on platform.¹

"Since launching our ETF model portfolios in 2019, uptake has been strong. Many financial advisers appreciate model portfolios for their time saving, allowing for improved engagement of existing and new clients as well as the appropriate investment structure to implement a core-satellite investment strategy," said Kathleen Gallagher, State Street Global Advisors' Head of SPDR ETFs Australia and Head of Model Portfolios EMEA and APAC.

"A key factor that differentiates State Street Risk-Based ETF Model Portfolios from competitors is the inclusion of smart beta in the global allocation, which supports additional capital growth while maintaining traditional risk tolerances.

"In other words, our risk-based portfolios are not your traditional 60/40, or 70/30 allocation - they are skewed towards growth while maintaining the same level of risk as traditional risk profile portfolios.

"In addition, we believe the transparent and open architecture nature of our models, will further support advisers to achieve the desirable outcomes for their clients.

"An open architecture investment structure means that ETFs from a range of providers have been considered to ensure portfolio investment selection is not limited by sector, asset class or product issuer."

Netwealth is a specialist investment and super platform for financial advisers and wealth professionals designed to help manage their clients' investment and superannuation portfolios..

Netwealth is used by more than 3,500 financial advisers, with more than $84.7 billion in funds under administration.³

Additional Resources:

For more resources on the basics visit our Model Portfolio educationlanding page.

Footnotes

¹ SPDR ETFs / Investment Trends 2024 Managed Accounts Report, March 2024.

² Source: Institute of Managed Account Professionals (IMAP) and Milliman, as at 31 December 2023

³ Netwealth, as at 31 March 2024.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world's governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with US $4.13 trillion^† under our care. *Pensions & Investments Research Center, as of 12/31/22. This figure is presented as of December 31, 2023 and includes approximately $64.44 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

Important Risk Information:

For financial advisers / wholesale clients only - Not for distribution to retail clients.

The recipient warrants by receipt of this material that they are a wholesale client, as defined under the Australian Corporations Act 2001 (Cth). State Street Global Advisors, Australia Limited (AFSL Number 238 276, ABN 42 003 914 225) ("SSGA, AL") is the investment manager for the State Street ETF Model Portfolios and State Street Global Advisors, Australia Services Limited (AFSL number 274900 ABN 16 108 671 441) is the Responsible Entity and issuer of units in the State Street SPDR ETFs which are Australian registered managed investment schemes quoted on the AQUA market of the ASX or listed on the ASX. State Street ETF Model Portfolios may include State Street SPDR ETFs and other third party ETFs. This material is general information only and does not take into account your or your client's individual objectives, financial situation or needs and you should consider whether it is appropriate for you or your client. You should ensure that your clients consider the product disclosure statement of the underlying ETFs, available at www.ssga.com or the third party ETFs website, before deciding whether to acquire or continue to hold units in an ETF.

General Risks: ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. ETFs typically invest by sampling an index, holding a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index. Investing involves risk including the risk of loss of principal. Diversification does not ensure a profit or guarantee against loss. Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. An investment in the model portfolio carries a number of standard investment risks; these risks are outlined in each Provider's PDS which should be read in full and understood by the potential investors.

Implementation Risk: State Street does not manage the accounts of retail investors pursuant to the model portfolio strategies and the strategies are only available to retail investors through various Providers that offer account management and other services to retail investors. The actual results of accounts managed by a Provider that receives access to the strategies may differ substantially from the hypothetical results of the State Street ETF Model Portfolios for a variety of reasons, including but not limited to:

• the fees assessed by the Provider and other third parties;
• the Provider's decision to exercise its discretion to implement a given strategy in a way that differs from the information provided by State Street;
• the timing of the Provider's implementation of strategy updates; and
• investor imposed investment restrictions; and the timing and nature of investor initiated cash flow activity in the account.

"SPDR" is a trademark of Standard & Poor's Financial Services LLC ("S&P") and has been licensed for use by State Street Corporation. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA, AL's express written consent.

Expires 30 April 2025

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