State Street’s SSgA Promotes Meier, Gekas in Reorganization

State Street Corp. (STT)’s money-management unit said Alistair Lowe, who headed quantitative equity investing, will leave the firm as part of a reorganization to boost client returns in a volatile market.

Ted Gekas, formerly head of global enhanced equity, was named chief investment officer and global head of active quantitative equity, the Boston-based company said today in a statement. Steve Meier, previously head of cash, will become CIO for cash, currency and fixed-income. Kevin Anderson, currently CIO and head of fixed income, will become head of investments for the Asia Pacific region based in Hong Kong.

The changes come in response to new investor needs following the 2008 financial crisis and “unprecedented monetary intervention” that has lowered interest rates and investment returns, the company said in the statement.

“In this dynamic market environment, we are evaluating our current strategies, building on our core business strengths and expanding into areas that will enable us to effectively deliver tailored solutions,” Scott F. Powers, president and chief executive officer of State Street Global Advisors, said in the statement.

SSgA’s move to combine cash management and traditional bond investing will help attract investors that may shift out of money-market mutual funds because of new rules, Powers said today in an interview. The U.S. Securities and Exchange Commission proposed June 5 that institutional money funds investing in corporate or municipal debt should be required to replace their fixed $1 share price with a floating value.

Lowe, who was CIO for global equities, a role that didn’t include SSgA’s Dublin-based traditional active equities team, will leave the firm by the end of 2013, the company said in the statement.

Quantitative investing uses mathematical models to select securities. Enhanced equity describes a lower-risk category of SSgA’s quantitative stock-picking strategies, Powers said.

To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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