Scotia Securities hired State Street Global Advisors as adviser to C$573 million (US$360 million) in indexed equity and fixed-income funds, according to Glen Gowland, director of investment products for Scotia. SSgA will advise the Scotia Canadian Stock Index, Scotia Canadian Bond Index, Scotia American Stock Index and Scotia International Stock Index funds.
SSgA replaces Barclays Global Investors Canada. Mr. Gowland said Scotia wanted the funds managed as stand-alone portfolios and didn’t want the manager to pool the assets or use exchange traded funds, which BGI had discussed as a way of lowering costs. "SSgA said it would manage the funds the way they’re managed today and still do it in a cost-effective way,” he said.
Jerry Rocchi, a spokesman for BGI in Toronto, said, "We’ve provided the best index fund returns of anyone in Canada. Scotia has now opted to go with a lower-cost provider, and we wish them well.”
