TORONTO--(BUSINESS WIRE)--Jan. 7, 2004--State Street Corporation
(NYSE: STT), the world's leading specialist in meeting the needs of
institutional investors, announced today that it has launched the
securities lending industry's first-ever Canadian cash collateral
fund, allowing Canadian-based lenders to collect additional returns
for their securities on loan.
State Street is the first lending agent in Canada to provide a
Canadian dollar, cash collateral re-investment option. State Street
currently manages securities lending cash collateral in four
currencies; US dollar, euro, Australian dollar and UK pound sterling.
"The launch of this fund is a testament to the maturation of the
Canadian securities finance market," said Don D'Eramo, vice president
and head of State Street's securities finance business in Canada.
"Historically, this market has been dominated by non-cash collateral,
but the short-term money market has become increasingly sophisticated
over the last few years. We've also seen market expansion as a result
of the rule change of 2001 that allowed mutual funds to lend
securities. We feel that the overall trend is increasing efficiency,
demand and returns, and we are confident that this fund will play a
key role in these developments."
State Street worked for several years with both regulators and
clients to promote the mutual-fund rule change and to create the cash
collateral reinvestment fund. Alberta Investment Management, one of
the largest asset management firms in Canada with CAD$38.3 billion in
total assets, is one of State Street's clients currently using the
Canadian cash fund.
State Street lends securities in more than 35 markets around the
world via trading desks throughout North America, Europe, and the
Asia/Pacific region -- providing clients with around-the-clock
opportunities as well as regional expertise and experience. State
Street has been providing securities lending services since 1974,
making it one of the most experienced lending agents serving the
market today. Its securities lending program is available to all
institutional investors worldwide, whether their assets are held in
custody at State Street or elsewhere. State Street works with clients
to provide providing risk-controlled lending programs to suit their
investment needs.
State Street's securities lending capabilities continue to be
recognized by the industry. In November, Euromoney magazine named
State Street's SL PerformanceAnalyzer(R) and SL
PerformanceReporter(R), "Best Electronic Securities Lending Reporting
Service" as part of the publication's 2003 Technology Awards. In
addition, for the past three years the world's largest borrowers have
rated State Street the "Top Lender" in International Securities
Finance magazine's Global Equity Finance survey. For more information
on State Street's securities finance capabilities, visit
www.statestreet.com/securitiesfinance.
State Street Corporation (NYSE: STT) is the world's leading
specialist in providing institutional investors with investment
servicing, investment management, research and analytics and trading
services. With $8.8 trillion in assets under custody and $965 billion
in assets under management (as of September 30, 2003), State Street
operates in 23 countries and more than 100 markets worldwide. For more
information, visit State Street's Web site at www.statestreet.com.
CONTACT: State Street CorporationHannah Grove, 617-664-3377
or
State Street CorporationCarolyn Cichon, 617-664-8672
SOURCE: State Street Corporation