Servicing fees include fee revenue from U.S. mutual funds, collective funds worldwide,
corporate and public retirement plans, insurance companies, foundations, endowments,
and other investment pools. Products and services include custody, product- and
participant-level accounting, daily pricing and administration; recordkeeping;
and wealth manager and hedge fund services. It also includes master trust, master
custody, and performance, risk and compliance analytics.
The GSS business provided a range of services that included global and local
custody, master trust/master custody, benefit payments, mutual fund administration,
master trust accounting, and performance measurement. Outside the United States,
services provided also included depotbank services.
State Street’s Investment Servicing businesses continued to grow outside the
United States. Baseline servicing fees derived from clients outside the U.S.
were approximately 23%. Including the GSS business, servicing fees derived from
clients outside the U.S. were approximately 30%.
State Street works with its clients to provide solutions that meet the needs
of managers of mutual funds, collective funds, pension and retirement plans
and other institutional investors worldwide through offices and a global custodian
network that spans more than 100 geographic markets.
State Street provides a broad range of investment management strategies, securities
lending, specialized investment management advisory services and other financial
services for corporations, public funds, high-net-worth individuals and other
sophisticated investors. These services are offered through State Street Global
Advisors® (SSgA®), a division of State Street. SSgA is the eighth largest investment
manager in the world, based upon assets under management, and the largest manager
of assets for tax-exempt organizations (primarily pension plans) in the United
States.
Management fees continued to show strong growth outside the United States.
Approximately 12% of new business is with non-U.S. clients.
SSgA offers a broad array of investment strategies, including passive, enhanced
and active management, using quantitative and fundamental methods for both U.S.
and global equities and fixed income securities.
While certain management fees are directly determined by the value of assets
under management and the investment strategy employed, management fees reflect
other factors as well, including State Street’s relationship pricing for clients
who use multiple services and performance-related fees.