BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE: STT), the world's leading provider of
financial services to institutional investors, today released its Vision
report on investment manager operations outsourcing, the latest
publication in its Vision series of thought-leadership papers intended
to further increase awareness and understanding of key themes and trends
facing institutional investors industrywide.
The new report, Outsourcing Investment Operations: Managing Expense
and Supporting Strategic Growth, reviews industry changes behind the
outsourcing trend and explores expected market developments, given the
accelerating pace of demand.
"In today's contracting economy, institutional investors are seeking
more efficient means of controlling fixed costs, reducing operational
and compliance risk, and positioning their organizations for long-term
growth," said Jeff Conway, executive vice president and head of
Investment Manager Services for State Street. "As this paper outlines,
many asset managers have found that third-party service providers create
operational and technical efficiencies with end-to-end solutions for all
steps in the investment cycle."
From the first major deals a decade ago, the report describes the steady
growth of investment operations outsourcing due to the expansion of
financial markets, increasingly complex alternative assets, and rising
merger activity. Global market dislocation in the past year has
intensified cost control pressures, while adding another reason to
outsource -- increased compliance risk.
"With almost daily reports of potential regulatory changes, compliance
risk has joined operational risk at the forefront of management
challenges," the paper states. "New accounting standards, the provision
of regular reports to supervisory bodies and even disclosing more
information to investors, are all likely developments that have
associated implementation costs and pose a risk if not done correctly."
Conway added, "Today, investment managers must strive not only to cut
costs and increase assets under management, but also signal to investors
that they can offer stability in uncertain times."
To obtain a copy of this Vision paper on investment operations
outsourcing 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 topics that
have included the pensions industry, sovereign wealth funds, the
insurance industry and derivatives.
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 $11.3 trillion in assets under custody and $1.4 trillion in assets
under management at March 31, 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
Carolyn Cichon, + 1 617-664-8672