State Street Launches Servicing Solution to Support Investment Operations for Small and Mid-Sized Asset Managers
State Street Vision Paper Reveals Boutique Investment Managers Cite Risk Aversion Ahead of Yield as No. 1 Factor Driving Decisions by Institutional Investors
BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYS: STT) announced today a new investment servicing solution to support small to mid-sized asset managers with their investment operations needs. The new offering is based on State Street's successful outsourcing platform, which supports many of the world's leading asset managers.
"Asset managers are confronting a range of challenges from heightened complexity as well as data and reporting needs, to regulatory changes that put added pressure on their existing platforms," said Jeff Conway, executive vice president and global head of State Street's Investment Manager Services team.
A recent State Street survey of more than 160 boutique managers globally, conducted by the Economist Intelligence Unit, revealed concerns about their readiness for industry challenges. The survey is highlighted in State Street's latest Vision paper, "Empowering Boutiques: The Rise of the Specialist Manager."
According to the research, one-third of managers stated that their operational and IT structure needed improvement, and 21 percent went so far as to say it could hamper their ability to achieve their strategic goals over the next two years. Forty-two percent of respondents see achieving sufficient scale with their in-house systems as a major data management challenge, while 22 percent reported that their ability to capture and report regulatory data needed improvement.
State Street's new investment servicing solution, which is available globally, includes transaction management, record-keeping, corporate action processing, data management, reconciliation, pricing and information delivery.
The service solution's short implementation timeline — four to six months — may lead to lower project cost and faster time to market for investment managers. Maintenance of system infrastructure and software is handled by State Street, and is further optimized by its scalable servicing model.
Conway added, "We have a strong track record of providing investment manager operations outsourcing services to support the growth of asset managers and incrementally add value as their needs evolve. Our industry-leading investment operations service aims to provide small and mid-sized investment managers with a scalable, lower risk, lower-cost technology option than building their own system or buying software. We look forward to partnering with these clients to support their growth over time."
State Street is a market leader in investment manager operations outsourcing, providing services for more than $8 trillion in middle-office assets to clients globally with integrated solutions supporting the entire investment cycle. Delegating operational functions to an experienced outsource provider can free up resources, allowing asset managers to stay focused on investment objectives. State Street supports full-scale middle-office functions, from trade matching and settlement through to performance and client reporting.
For additional information on State Street's survey of boutique asset managers and Vision paper, "Empowering Boutiques: The Rise of the Specialist Manager," visit www.statestreet.com/vision.
About State Street Corporation
State Street Corporation (NYS: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $22.4 trillion in assets under custody and administration and $1.9 trillion* in assets under management at June 30, 2012, State Street operates in 29 countries and more than 100 geographic markets. For more information, visit State Street's web site at www.statestreet.com.
* This AUM includes the assets of the SPDR Gold Trust (approx. $66 billion as of June 30, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the distribution agent.
State Street Global Services is the investment servicing business of State Street Corporation (NYS: STT) , one of the world's leading providers of financial services to institutional investors.
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State Street Corporation
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