Investment Management
As the world’s fourth-largest asset manager,1 State Street Investment Management serves clients globally with a singular objective: to be the leading partner and provider of innovative investment products, exposures, and tailored solutions. We partner with clients to achieve their investment objectives through a leading global platform in indexing, exchange-traded funds (ETFs), and active and quantitative strategies, supported by our scale, long-standing market presence, and breadth across all major asset classes and investment styles.
Since launching the first U.S. ETF in 1993, we have continued to innovate for our clients — delivering customized strategies, advanced analytics, and scalable solutions that help clients navigate complexity and seize opportunity. Our focus remains firmly on turning market challenges into lasting value for investors worldwide.
A year of resiliency amid volatility
The investment environment in 2025 was shaped by heightened uncertainty driven by shifting macroeconomic conditions and geopolitical dynamics. These factors tested markets and investment strategies across the globe. We met this environment with resilience, collaboration, and disciplined execution, maintaining an unwavering focus on client outcomes.
“In a year of rapid change, we achieved robust results across our core franchises, underscoring our relentless pursuit of innovation and our unwavering focus on client success.”
Delivering growth in a turbulent market
Despite ongoing volatility, State Street Investment Management delivered record performance in 2025, including a record level of assets under management (AUM) and management fee revenue. Net inflows totaled $180 billion, while management fee revenue increased 13 percent year-over-year to $2.4 billion. AUM reached a record $5.7 trillion, marking the third consecutive year of more than 3 percent organic growth.
Fixed-income strategies led organic asset growth, in addition to strong demand for multi-asset class solutions, liquidity, and equity strategies. We reached all-time highs across multiple funds:
- U.S. low-cost ETFs hit $344 billion in AUM with a record $62 billion in annual net inflows
- Gold ETFs generated $31 billion in net annual inflows, the highest level to date, reaching $173 billion in AUM
- U.S. defined contribution generated strong annual net inflows of $36 billion, including a new peak of $23 billion into U.S. target-date funds
- Cash AUM rose to $570 billion — the highest level since 2008
- U.S. Government Money Market Fund grew 27 percent to $221 billion
- U.S. Treasury Plus Money Market Fund rose 24 percent to $70 billion
“Our ETFs and investment funds product suite stood out for performance and value. Investors trusted us to lead — and we did — raising the bar for innovation and access across the industry.”
Anna Paglia
Chief Business Officer of State Street Investment Management
Creating competitive advantage through strategic partnerships
Our performance in 2025 was fueled by strategic partnerships and targeted minority equity investments that expanded investor access to institutional-quality strategies and unlocked high-growth markets. Collaborations with industry-leading alternative investment management firms broadened our offerings of sophisticated investment tools for our clients, while partnerships with technology providers and fintech platforms enabled us to reach new client segments around the world.
Together, these relationships are allowing us to deliver more personalized, scalable, and value-driven investment solutions to digital-first investors and retirement savers.
Accelerating investor success with agility and innovation
To meet evolving investor demand for diversification and resilience, we launched 134 new products in 2025.
Key initiatives included:
- The first ETF to invest directly in private credit — SPDR SSGA IG Public & Private Credit ETF
- Developing our first target-date fund to offer exposures to private markets — State Street Target Retirement IndexPlus
- The launch of the SPDR Bridgewater All Weather ETF (ALLW), now managing more than $1 billion in assets2
- Expanding the MyIncome ETF suite to support customized bond ladders and predictable income generation
- Continued global expansion with the launch of the SPDR J.P. Morgan Saudi Arabia Aggregate Bond ETF, enhancing access to emerging market opportunities
Demonstrating the strength of our ETF platform, the SPDR FTSE Global Convertible Bond ETF was named Fixed Income ETF of the Year by ETF Stream Awards, recognizing the expertise and collaboration of our global investment teams.
Empowering investors through stewardship and choice
In 2025, we expanded our proxy voting choice program by adding new third-party voting policy options, increasing the breadth of choice available to clients and investors through the program. To date, more than 80 institutional clients globally have participated in State Street Investment Management’s institutional proxy voting choice program, representing approximately 10 percent of State Street Investment Management’s eligible institutional assets under management.3 In addition, adoption of the retail proxy voting choice program among U.S. ETF and mutual fund investors increased 53 percent to over 29,000 shareholders.
In 2024, we expanded our European proxy voting choice program to retail investors with the launch of a first-of-its-kind pilot for an Irish-domiciled SPDR ETF. In 2025, we further expanded our European institutional proxy voting choice program to include eight Luxembourg-domiciled funds.
With these expansions, State Street Investment Management’s proxy voting choice program is now available to institutional and retail investors in more than 600 State Street Investment Management funds across the United States, the United Kingdom, Luxembourg, and Ireland.
“Our focus remains steadfast — we empower investors with the insights, tools, and stewardship they need to make confident decisions.”
Lori Heinel
Global Chief Investment Officer of State Street Investment Management
Harnessing artificial intelligence to enhance investment excellence
Artificial intelligence (AI) remains a strategic priority for State Street Investment Management. In 2025, we advanced the integration of AI across select areas of the business to enhance investment research, portfolio construction, and operational efficiency — supported by our Responsible AI Framework emphasizing transparency, fairness, and accountability.
Key areas of progress included:
- Investment research and portfolio construction: AI-supported analysis of large, complex datasets to identify market trends and inform risk management
- Client solutions and customization: AI-enabled platforms facilitated more efficient development of tailored investment solutions, including automated portfolio commentary and scenario analysis
- Operational efficiency: Automation supported processes such as compliance monitoring and marketing analytics, reducing operational risk and improving resource allocation
Looking ahead
Building on our leadership in indexing, ETFs, active and quantitative strategies, cash, and multi-asset solutions, we remain focused on broadening access to private markets and global wealth and retirement opportunities, accelerating product innovation, and expanding our presence in Europe, Asia, and the Middle East.
We will continue to deepen strategic partnerships and leverage technology to enhance distribution and the client experience, while upholding our leadership in stewardship and governance through transparent proxy voting.
As we navigate an increasingly dynamic investment landscape, our priorities remain clear: anticipate client needs, manage risks proactively, and deliver sustainable, long-term value for clients and shareholders alike.