Boston, Massachusetts-based State Street Corporation (State Street) has released vision report on investment manager operations outsourcing, to further increase awareness and understanding of key themes and trends, facing institutional investors industry wide.
The report reviews industry changes behind the outsourcing trend, and explores expected market developments, given the accelerating pace of demand. From the first major deal 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.
Jeff Conway, Executive Vice President and Head of Investment Manager Services, State Street, said: “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. 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.”
State Street is a provider of financial services to institutional investors including investment servicing, investment management and investment research and trading.
