State Street Global Advisors, which is reeling from the triple whammy of multiple lawsuits, performance issues and an exodus of key managers, could face even tougher times ahead. Worried consultants are warning of a deep disquiet among SSgA’s ranks and say more departures are on the cards. In December 2007 alone, the fund manager lost eight active quant equities portfolio managers and chief executive William Hunt stepped down in the first week of January to be temporarily replaced by James Phelan. Last month, the company also established a 618 mln usd reserve fund for legal costs associated with the underperformance of some of its fixed-income strategies. One consultant said: “We are watching the situation at SSgA very carefully and we understand that there may be some departures. Staff morale is not very good at the moment and although the bonus plan for 2008 has been finalised, people are still concerned about the lawsuits in the US and the departures of some key managers.”