State Street's Anna Paglia on Private Credit ETF Strategy and SEC Scrutiny

ETF Industry Trends

• 💡 The ETF conference in Las Vegas highlights key investor concerns, with 90% of assets currently US-based, indicating continued confidence in the US economy.
• 📈 Investors are seeking hedges against volatility, leading to strong flows into commodities and gold.

Private Credit ETF Launch

• 🎯 State Street Global Advisors, in partnership with Apollo, launched the SSGA Apollo public and private credit ETF (PRIV) to offer private credit exposure.
• 📊 The fund's exposure to private credit is currently between 19% and 20%, within the advertised range of 5% to 35%.
• ⚙️ The portfolio managers will adjust this exposure based on their view of the overall portfolio performance.

Fund Liquidity and Sourcing

• 🔍 Not all private credit within the fund is sourced through Apollo, but State Street is confident in the liquidity of the private credit exposures held.

SEC Scrutiny and Resolution

• ⚠️ The ETF faced SEC questions after its launch, which were made public on Edgar, causing some initial concern.
• ✅ State Street addressed these comments within 24 hours, and the SEC staff subsequently had no additional comments, resolving the unusual situation.
• 🤝 State Street has agreed to remove Apollo from the fund's title.