State Street Global Advisors has entered into an agreement with Nuveen Investments under which Nuveen will become sub-adviser for municipal bond SPDR exchange-traded funds along with other municipal bond investment strategies managed by State Street Global Advisors.
Under the terms of the agreement, Nuveen Asset Management will be responsible for managing the assets of five existing municipal bond SPDR ETFs under oversight of SSgA Funds Management and the board of trustees for each SPDR ETF.
SSgA Funds Management will continue to serve as the investment adviser for the municipal bond SPDR ETFs.
With nearly USD2bn in assets, SSgA’s municipal bond ETFs will be re-branded as SPDR Nuveen municipal ETFs and include: SPDR Barclays Capital Municipal Bond ETF; SPDR Barclays Capital California Municipal Bond ETF; SPDR Barclays Capital New York Municipal Bond ETF; SPDR Barclays Capital Short Term Municipal Bond ETF; and SPDR S&P VRDO Municipal Bond ETF.
The sub-advisory agreement, which has been approved by the board of trustees and shareholders for each SPDR ETF, will become effective on 1 April 2010.
"Bringing together Nuveen’s extensive experience in managing municipal bond portfolios with State Street’s leadership in exchange traded funds creates an unmatched offering in municipal bond portfolios," says Jim Ross, senior managing director at State Street Global Advisors.
Tim Ryan, lead portfolio manager of the municipal bond SPDR ETFs and a unit head for State Street Global Advisors’ municipal bond group, will transition to Nuveen Asset Management as senior vice president.
"We are pleased to be teaming up with State Street, the firm that created the first exchange traded fund, to provide investors and investment professionals with precise investment products that combine the advantages of municipal bonds and ETFs," says Bill Huffman, chief operating officer and co-head of Nuveen Asset Management. "The synergies created by this partnership will benefit investors and create exciting new opportunities for collaboration."