State Street Corp.’s STT asset management arm, State Street Global Advisors has joined forces with Bridgewater Associates LP, to boost its core alternative investment strategies.

Rationale Behind STT’s Collaboration

Alternatives continue to be a lucrative investment option for investors to enjoy greater diversification and attractive returns. Per a State Street Global Advisors ETF Impact Report 2024, 45% of institutional investors globally intend to increase their allocations toward alternative investments in the next 12 months. Further, 41% of U.S. financial advisors plan to suggest their clients to increase allocations.

Anna Paglia, chief business officer at State Street Global Advisors, stated, “Bridgewater is known for its 40-year history of delivering resilient, diversified portfolios and insights to many sophisticated institutional global investors, including innovative approaches to strategic asset allocation. We are excited that this strategic relationship will now bring that portfolio construction expertise to retail investors as well.”

Hence, the partnership aligns with State Street’s growth strategy to strengthen its fee income. This September, the company collaborated with Apollo Global Management and its affiliates to enhance investors' accessibility to private market opportunities.
 
Further, in August, the company announced an investment in Raiz Invest Limited to grow customers’ wealth by helping them save and invest. The company has also partnered with Taurus SA, to enhance its digital asset solutions.

STT’s Zacks Rank & Price Performance

Year to date, shares of State Street have risen 22.3% compared with the industry’s 30.6% growth.

Image Source: Zacks Investment Research

Currently, STT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Strategic Collaborations Pursued by Other Finance Firms

Earlier this month, AllianceBernstein L.P. AB entered into a partnership with Reinsurance Group of America, Incorporated RGA to expand its insurance business.

AB has been selected as one of the leading investors in Ruby Reinsurance Company, a reinsurance sidecar vehicle sponsored by RGA. It focuses on the U.S. asset-intensive market. AB plans to manage private alternative assets for RGA’s general account through this transaction.

Similarly, Tradeweb Markets Inc. TW has announced a partnership with the Tokyo Stock Exchange to enhance liquidity for institutional investors in Japanese exchange-traded funds (ETFs).
 
This complements TW’s offering that allows its buy-side traders to transact Asia, Europe and U.S.-listed ETFs, enjoying multi-dealer liquidity, enhanced pre-trade transparency and lucrative pricing.

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