State Street Global Advisors is converting almost $1 billion in a commingled fund managed for tax-exempt institutional clients to new Dow Jones-based style indexes, said Christopher M. Pope, SSgA principal and director-client services for defined benefit plans.
Also, SSgA has filed to register up to eight exchange-traded mutual funds based on the Dow Jones style indexes for retail and other investors.
As of July 1, SSgA will convert to style indexes built from the Dow Jones U.S. Total Market index of 2,100 stocks for its existing commingled fund. It will scrap its Muldex multiple domestic equity indexes, based on the Russell 3000 universe.
The move will affect $900 million from institutional clients, now invested in the Muldex styles. Mr. Pope said the clients have agreed to stay in the commingled fund.
Michael A. Petronella, managing director, Dow Jones Indexes, said his firm plans to license use of its U.S. style indexes to other index-fund managers. SSgA is the first to do so and begin investing with them.