State Street Investment Management, the asset management business of State Street, launched the State Street Short Duration IG Public & Private Credit ETF (PRSD). The fund is an actively managed short-term core bond solution, primarily allocating to investment grade debt securities through public and private credit instruments, seeking to maximize risk-adjusted returns alongside current income for investors.
“Private credit is one of the fastest-growing segments of the market in recent years, but has historically been an underutilized allocation in portfolios,” Anna Paglia, chief business officer of State Street Investment Management, said. “That changed earlier this year when we launched PRIV — the SPDR SSGA IG Public & Private Credit ETF — a core bond fund offering exposure to a combination of investment-grade public and private credit ETF. Now, PRSD builds on the launch of PRIV and continues the convergence of public and private markets by expanding our lineup to include a short-term bond strategy that can be used to pursue potential excess returns while managing duration risks.”
Managed by the State Street Investment Management Active Fixed Income Team, PRSD seeks to maximize risk-adjusted returns through a risk-aware, macroeconomic top-down approach combined with bottom-up security selection to construct a portfolio that seeks to overweight the most attractive sectors and issuers. While the portfolio’s sector, credit rating allocation, and sensitivity to interest rates can vary over time, the fund seeks to target a duration between one and three years.
“PRIV and now PRSD are exciting strategies that investors can use to help diversify potential sources of alpha and income within bond portfolios,” Paglia said. “We’re excited to be a standard bearer in the continued convergence of public and private markets.”
