Follow-up Report Examines State of Funds in Wake of Global
Financial Crisis
BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE:STT), the world's leading provider of
financial services to institutional investors, today released its latest
Vision Series report examining the impact of the recent financial
markets on sovereign wealth funds. Entitled "Sovereign Wealth Funds:
Emerging from the Financial Crisis," the report assesses the funds'
short- and long-term outlook, from investment opportunities to corporate
governance issues.
This new Vision paper updates an earlier Vision Series report on
sovereign wealth funds published in mid-2008, and highlights the
dramatically altered investment and political environment facing these
funds due to the global financial turmoil.
"The unprecedented events within the financial marketplace have
significantly changed both the public perception of sovereign wealth
funds and the way these funds perceive their own role as very large
institutional investors," said Jay Hooley, president and chief operating
officer of State Street. "The sizeable challenges and opportunities
confronting sovereign wealth funds today compelled us to revisit the
themes in our 2008 Vision report to assess the immediate and long-term
implications of the crisis."
With renewed debate about the global financial structure and the need
for a super-sovereign reserve currency, the Vision report contends that
the post-crisis reality has created an excellent basis upon which
sovereign wealth funds and the rest of the global financial community
can further their cooperation and forge a mutually beneficial
coexistence.
The report states, "The funds have experienced substantial declines in
both their investment valuations and in the value of the commodities and
exports that support their growth. This downturn has prompted a
reassessment not only of the funds' investment assumptions and
approaches, but more broadly of their priorities and objectives in a new
financial world order."
The paper also concludes that, "Given the vast pool of assets they
represent, sovereign wealth funds will be important participants in
shaping the future of global finance."
Three State Street experts authored the Vision report: John Nugee,
managing director of SSgA and head of OIG; Andrew Rozanov, head of
Sovereign Advisory and managing director at State Street Global Markets,
the investment research and trading arm of State Street; and George
Hoguet, senior portfolio manager and global investment strategist at
SSgA.
State Street's Vision Series of in-depth reports is intended to advance
understanding of key themes and trends in the financial services
industry. To obtain a copy of this report or for more information,
members of the press can contact publicrelations@statestreet.com.
All other requests can be directed to vision@statestreet.com.
Previous reports in State Street's Vision series address a range of
topics, including derivatives servicing, the insurance industry, hedge
funds and private equity, and investment operations outsourcing.
About State Street
State Street Corporation (NYSE: STT) is the world's leading provider of
financial services to institutional investors, including investment
servicing, investment management and investment research and trading.
With $16.4 trillion in assets under custody and administration, and $1.6
trillion in assets under management at June 30, 2009, State Street
operates in 27 countries and more than 100 geographic markets worldwide.
For more information, visit State Street's website at www.statestreet.com.
Source: State Street Corporation
Contact: State Street Corporation
Arlene Roberts, + 1-617-664-3933