Insights

Indexed Fixed Income at State Street Global Advisors Snapshot 2024

January 3, 2025

Our Indexed Fixed Income franchise has been a notable highlight for State Street Global Advisors, with exceptional progress achieved over the last five years. Moreover, we continue to see strong interest in the asset class despite volatile markets and an uncertain economic outlook. We believe that the innovative and systematic approach we take to consistently deliver indexed returns is a key factor in our clients’ decisions to partner with us to achieve their fixed income goals.

The strength of demand for indexed fixed income strategies managed by State Street Global Advisors is illustrated by net inflows of $33 billion in the first nine months of 2024 (Figure1). This followed an increase of over $40 billion in 2023, the second highest in our history. Flows were realized primarily within our government and multi-sector strategies, with investor interest in the credit sectors also ramping up amid improving sentiment.

Figure 1: Indexed Fixed Income AUM Maintains Strong Growth in 2024

As of the end of September 2024, we were managing a record high of $666 billion in dedicated indexed fixed income assets, distributed across a broad range of exposures from simple to complex.

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Diversification does not ensure a profit or guarantee against loss.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities.

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