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 (NYSE: 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 (NYSE: 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 (NYSE: STT), one of the world’s leading
providers of financial services to institutional investors.
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State Street Corporation
Arlene Roberts, +1 617-664-3933
acroberts@statestreet.com
Source: State Street Corporation