Exploring New Routes to Opportunity · 2020-05-05 · Exploring New Routes to Opportunity State Street We’re creating new tools and products to position you to realize the immense

Exploring New Routes to Opportunity

State Street

We’re creating new tools and products to position you to realize the immense potential of global trends in retirement savings. And we’re focused on expanding our services to make it easier and faster for you to do business in emerging markets, by adding currencies, expanding custody services and extending trading deadlines.

Our goal is to partner ever more closely with you, using our best-in-class technology, financial services and investment expertise to create customized solutions that leave you free to chart your own course.

STATE STREET 2014 YEAR IN REVIEW

From our vantage point at the heart of global financial services, we do more than help you respond to today’s storms and squalls. We’re leading the way ahead with forward-thinking, flexible solutions that make sure your firm has a tight ship in every kind of weather.

Most important, we’re equipping you with solutions that will allow you to capitalize on global trends and focus your attention on what can differentiate you from competitors.

In the current wave of regulatory requirements, we see the opportunity to help you make sense of complexity, and we take advantage of increased transparency to uncover new investment opportunities. We’ve streamlined processes to help you smoothly navigate regulatory compliance and introduced tools to keep you coping fluidly with future change.

2014 Industry Recognition

Best Securities Financing House in Asia PacificAsia Asset Management 2014 Best of the Best Awards

Best ETF Service Provider in Asia Pacific and EuropeExchangetradedfunds.com2014 Global ETF Awards

Mutual Fund Administrator of the Year, Transfer Agent of the YearCustody Risk2014 Americas Awards

No. 1 in Flow Research and Quantitative Research for Real Money ClientsEuromoney2014 Foreign Exchange Survey

No. 1 Global Custody (weighted rankings)Global Investor / ISF2014 Global Custody Survey

Hedge Fund Administrator of the Year, Transfer Agent of the YearFunds Europe 2014 Funds Europe Awards

No. 1 Equity LenderGlobal Investor / ISF2014 Equity Lending and Technology Survey

Hedge Fund Administrator of the YearGlobal Investor / ISF2014 Investment Excellence Awards

To meet the demands of fund managers of liquid alternatives — an investment strategy that is rapidly gaining popularity — we also offer a “one-stop” solution for risk and performance reporting, compliance, accounting, custody/settlement and analytics. We provide risk-reporting services to some of the leading liquid alternative managers in the industry. All risk solutions are powered by truView®, State Street’s proprietary risk engine.

State Street Global Exchange has developed a new business that creates Investable Product Models that fit easily into existing investment processes and can be tailored to specific client needs. By working with you and engaging resources from across our organization — most notably from State Street Associates®, our collaboration with academia — we offer research and investment implementation in a format that is designed to be flexible, transparent and cost-effective. We provide applications and investment strategies based on State Street Global Exchange’s award-winning research on the subjects of risk, return, liquidity and alpha and developed in collaboration with our renowned academic partners. We deliver a turnkey, rules-based, quantitative investment model. We make our investment process transparent, allowing you to add meaningful input to the strategy formulation. You can choose to receive the model specification directly if you are internally managed, or retain an investment manager who would receive daily model feeds from a third-party calculation agent.

DATA AND ANALYTICS

Combining information and insight to help you zero in on opportunity

As you seek to increase customization within differentiated investment products, we have solutions to meet your needs.

We intend to be the preferred intermediary for clients who need to expand their capacity to access liquidity on e-trading platforms, and we aim to be a prominent catalyst for change in the support and development of new liquidity venues and protocols. We use our technology and client-focused service model to provide institutional counterparties with matched-principal intermediation and clearing for cash fixed-income transactions traded on various e-trading platforms. Our initial focus is on the U.S. and European corporate bond market, where dealers, buy-side firms, e-trading platforms, new product innovators and regulators appear to be in agreement that secondary market liquidity can be achieved only through structural change.

Expanded offerings from State Street Global ExchangeSM

State Street Global Exchange offers a Liquidity Risk solution that assists advisers and fund managers in assessing overall fund liquidity and the ability to meet potential funding liabilities in both normal and stressed environments. This includes assessing the needs and sources of fund liquidity over a number of periods, for example, 1 day, 5 days, 30 days and potentially longer periods.

State Street Global

Exchange brings

together sophisticated

data, flexible analytics

and a client-focused

service model that

allows you to

holistically measure

and evaluate risk,

explore broader

asset classes, and

make faster, more-

informed, real-time

trading decisions.

STATE STREET

2 STATE STREET 2014 YEAR IN REVIEW

DataGX is our hosted Data as a Service solution that allows you to aggregate and enrich internal and third-party data, providing a holistic and integrated view of your holdings for analysis and reporting. Built on our robust and scalable private cloud infrastructure, DataGX uses an open architecture that leverages our Enterprise Servicing Platform (ESP). It enables us to deliver highly configurable data solutions based on your specific business needs.

With an established set of proprietary tools and modern infrastructure at its foundation, DataGX extends the capabilities of a traditional data warehouse to deliver a “data refinery” that can handle an organization’s data across sources and investment types.

To leverage the new data refinery, we are also introducing Portfolio Monitor, which will use the data refinery to centrally aggregate public and private investment data and prepare it for consumption by downstream analytics. From this common data set, Portfolio Monitor also consolidates a standard set of key investment analytics to illustrate exposures, risk concentrations and performance of total assets. This new investment monitoring platform will be particularly useful to large, complex asset owners who struggle to get transparency across private markets and desire consistent data sets for use in their analytics.

Recognizing that asset managers and complex asset owners have a need for a combined performance and risk analytics platform, State Street Global Exchange introduced the Integrated Risk and Performance Solution. This major step forward gives you the power to more completely measure and monitor the risk/return trade-off in your funds or investment strategies. The new capabilities incorporated into our core risk engine platform, truView®, complement our advanced risk attribution and decomposition methodologies, and the Integrated Risk and Performance Solution allows perfect alignment of risk and performance analytics on a single source of aggregated and enriched data. Therefore, our position-based performance module, with fixed-income and equity attribution, is incorporated within our ex ante position-based risk platform, allowing flexible aggregations and drill-down capabilities. We offer three attribution modules, including multi-asset top-down attribution, multi-asset bottom-up attribution and fixed-income attribution, to support your investment decision-making processes and front-office needs.

STATE STREET

STATE STREET 2014 YEAR IN REVIEW 3

GX Investment LabsSM is a web-based suite of interactive investment decision tools for the front-office, based on the unique information and research from State Street Associates® (SSA). GX Investment Labs consists of individual modules, or “labs,” that cover each stage of the investment process, spanning strategic and tactical asset allocation, manager assessment, risk management, alternatives benchmarking and more. These labs empower clients to apply renowned research from State Street Associates on risk management, liquidity modeling, and asset allocation to their own investment process. There are currently four modules available, including GX Risk Lab, GX Liquidity Lab, GX Portfolio Lab and the GX Private Equity Index Portal.Additional labs are under development and we plan to bring them to market in 2015. For a quarterly subscription fee with no long-term commitments, clients can gain access to whatever collection of labs they want and can easily tailor their analysis using a combination of historical asset returns, parameter calibration, and their own forward-looking views.

The GX Private Equity Index and the GX Private Equity Portal help address a need for accurate and representative insight into private equity performance. Launched in the last quarter of 2014, the portal is a decision support tool that offers reporting, custom indexing and benchmarking capabilities with metrics calculated from the actual transactional data used to build the GX Private Equity Index itself.

Delivering subscribers powerful investment insight and information solutions, the GX Private Equity Index Portal goes beyond summary statistics, offering dynamic filters and calculation capabilities to examine subsets of data across selected time horizons and granularities.

DIGITAL CLIENT EXPERIENCE

Continuing development of my.statestreet.com to meet your expanding needs

We have improved the user experience at my.statestreet.com in several ways: Simplified navigation, self-service training, and new and improved services are delivered in continuous response to your growing needs.

We continually enhance the my.statestreet.com client portal, with new content and easy-to-use, feature-rich tools that improve productivity and enable better decision making.

We focused on creating a more personalized and customized experience at my.statestreet.com by simplifying the navigation and making it easier for you to find and explore useful new reports and information about relevant products and services. With a single click from a personalized my.statestreet.com homepage, you can access the reporting and tools you use the most. Our new search feature allows you to find any report, document or tool you’re entitled to access, with a single click.

Bridging industry and academia

We’ve developed a

partnership with

renowned academics

to bridge the worlds

of financial theory and

practice. Through that

collaboration, State

Street Associates,

we can apply those

insights from

academia to guide your

investment strategy.

STATE STREET


Data visualizations on your homepage provide snapshots of key account information.

We added high-level training videos to the online support center. These short videos walk you through common tasks and provide an overview of the various features and functionality available on my.statestreet.com. You can access the videos at your leisure and view them at your own pace. The videos nicely complement our client service team members who are the subject matter experts and primary day-to-day support contacts for my.statestreet.com.

More flexible reporting for cash settlement activities

We have augmented cash forecasting in several ways. Now, in addition to an interactive view, you can also generate reports and have them delivered to you automatically via email. We also added data on upcoming non-U.S. maturities and previously unforecasted clean cash flows.

To expand our cash projection report inventory, Accounting clients using cash availability services can now access five different cash projection reports directly from my.statestreet.com as soon as they are approved. You can choose to view reports in either base or local currency, and save or print directly to your printer.

We’ve introduced three new categories of activity to improve granularity in reporting and to further differentiate various custody

cash activity types that are currently reported as miscellaneous.

The new Cash Account Interest Statement provides supporting detail for Demand Deposit Account (DDA) interest postings. You can now access the value-dated balances and interest rates that were used to calculate/record interest from a specific time frame.

Cash Services expanded data for our Custody, Alternative Investment, Securities Finance and Corporate Cash clients.

• The enhanced Trade Date Cash report allows Alternative Investment clients to access cash balances by either trade date or settlement date for better cash forecasting.

• Focused on Security Finance clients, the new Cash and Non-Cash Collateral report concentrates on the details for collateral holdings. Analyze data based on various security-level details — from non-cash tri-party or bi-party collateral to cash invested by specific investment vehicles.

• A new Unrealized Days to Maturity report enables Corporate Cash clients to analyze their position information by lot, and to focus on their unrealized days to maturity.

New and expanded dashboards for alternatives managers

Alternative Investment clients will benefit from our growing inventory of dashboards including the revamped Reconciliation and

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The high-level snapshot of information makes it easy to research why a trade failed.

• The Trade Management Dashboard, which provides near-real-time trade status and detail information, has been upgraded with the addition of a new landing-page overview, a dropdown menu to navigate across dashboards and a “latest version” view option of the received trades. You can now focus on key metrics, use an easier navigation and view the latest versions of received trades.

• We improved the Reconciliation Dashboard, which provides an overview and detailed information on cash and position breaks, to enable you to drill into the open breaks by age in order to focus on specific categories.

INVESTMENT SERVICING

Expanded markets, enhanced compliance, increased efficiency and improved reporting

Custody

Greater scope, functionality and insight

We made improvements to Automated Clearing House (ACH) initiation via file transmission with the introduction of ACH Inquiry Track. This online self-service tool allows you to view transaction details; generate, receive and control information; and monitor processing status. ACH Inquiry Track also automatically notifies you to confirm successful file processing by the end of the business day.

Trade Management Dashboards and the new Failed Trade Dashboard.

You now have direct access not only to a trading overview, but also to current trade status such as received, confirmed/unconfirmed and failed trades, and positions and cash reconciliation status. We continue to increase efficiencies with ongoing enhancements, adding dashboards for Fund of Hedge Funds, NAV Dealing Date, and Custody and Financial Reporting.

More than 55 new PDF reports and five new Interactive Views on my.statestreet.com now combine accounting, risk and performance data into a comprehensive daily-reporting package for alternatives managers. The risk data includes more than 50 different exposure and liquidity data points, and the performance data includes daily rates of return and contribution to return results, from the fund level all the way down to the security level. Alternative Investment Solutions offers you the ability to view performance and exposure by various criteria, including asset class, GICS sector, country, long/short and market cap, to name just a few.

• The Failed Trade Dashboard provides high-level trade information related to trades that have failed for a selected fund, date and entity. Multiple view options on failed trades are available specific to brokers, including the number of days, percentage, daily fail reason and three-month history.

With the

my.statestreet.com

portal, you have

all your investments

in one place. You can

easily access key

investment insights

and customize

reporting for better

decision making.

STATE STREET


Because we are committed to providing you and your investment managers with the necessary flexibility to submit cash instructions, we revised deadlines for electronic cash instructions processed through our London branch effective July 1, 2014. Improved deadlines were implemented for the following nine currencies: Bulgarian lev (BGN), Croatian kuna (HRK), Czech koruna (CZK), Danish kroner (DKK), euro (EUR), Hungarian forint (HUF), Israeli shekel (ILS), Polish zloty (PLN), and U.S. dollar (USD).

We are committed to providing clients and their investment managers with the necessary flexibility to submit cash instructions to State Street using the most favorable deadlines possible.

We entered into subcustodian arrangements with agents in Albania, Malawi, Panama and Tanzania in March 2014, and our custody network now reaches a total of 111 markets. Client cash accounts denominated in the following currencies were converted to our standard on-balance-sheet operating in 2014: the Romanian leu (RON) in March, the Moroccan dirham (MAD) in May, and the United Arab Emirates dirham (AED) in August.

Improved cut-off times for voluntary corporate actions

In March 2014, we announced our improved response deadline for voluntary corporate action events in the U.S. market. We provide corporate action decision makers with one additional business day in which to make their decisions and submit their

elections. That cuts our deadline time in half, from market cut-off minus two business days to market cut-off minus one business day. (Our deadline time of noon, Eastern Time, remains unchanged.) Events requiring original documentation, such as bankruptcies and consents, will continue to have a deadline commensurate with the instruction process.

Improving efficiency and transparency for North American securities settlements

To meet Depository Trust Company’s (DTC) Settlement Matching requirements, we made changes to our Securities Movement and Control (SMAC) custody system. We improved our Receiver Authorized Delivery (RAD) matching capabilities to accommodate higher message volumes and to streamline the process for matching transactions prior to settlement. We can now review and approve all of your non-ID-affirmed receive transactions before they settle on DTC’s books and records. This provides you with improved intraday settlement finality and increased transparency, while also reducing systemic risk associated with trade reclaims.

The new DTC Trade Pre-Settlement Status provides Custody clients with information on any trade specific to four different statuses: matched, unmatched, broker only and client only. The trade status information enables you to address issues with brokers or to prevent settlement issues by accessing the specific trade statuses.

STATE STREET


When the DTC decided to discontinue the storage of sealed envelopes, we built a secure access-controlled holding facility in Quincy, Massachusetts, to allow us to continue storage of your sealed envelopes. The Physical Settlement Unit within our Securities, Banking and Treasury Management Services (SBTMS) created a new in-house operating model to accommodate such holdings, which has improved service with quicker settlement turnaround times and improved reporting of envelope positions.

Greater access to opportunity in Mainland China

In November 2014, we launched Shanghai–Hong Kong Stock Connect (Stock Connect). It provides a more direct alternative for mainland China investors looking for access to Hong Kong markets (Southbound Trading) and gives foreign investors direct access to Shanghai equity market (Northbound Trading) outside of the current QDII/QFII/RQFII quota systems.

In support of our Northbound Trading clients on Stock Connect, we expanded our custody services to offer a Third-Party Clearing, or Preferred Broker custody model. A Preferred Broker is an independent third-party service provider who both operates a broker business and is affiliated with a State Street subcustodian. Such a service provider is an eligible subcustodian appointed by State Street in our capacity as global custodian. The Preferred Broker model eliminates

the requirement to pre-deliver the shares to the broker’s account (and therefore mitigates the risk associated with pre-delivery of shares).

Within the context of Stock Connect, we also provide you with greater trading flexibility, choice and simplicity by offering indirect FX services through State Street Global Markets (SSGM) to facilitate foreign currencies conversion against CNH for T+0 settlements. SSGM, through a licensed affiliate of State Street as securities broker, also offers agency broker execution services, through arrangements established or to be established with agent brokers.

A single application for corporate actions notifications and messaging

We put into place a single, proprietary application to support all middle-/back-office services, and we expect to finish migrating our clients to this model by 2015. This brings numerous new features to our core offering, including enhancements to CApTAIN, the expansion of Standing Instructions, and formatting changes to Notifications, including SWIFT.

• CApTAIN

– A customizable event composite offers easy access to a single data view.

– Open elections within active queues are now color-coded to alert you to upcoming critical event deadlines.

– A new special instruction field communicates supplemental information critical to executing an election.

Benefit from our

global relationships

with local depositories,

subcustodians and

agent banks.

STATE STREET


• Standing Instructions

– You can now maintain a preferred currency hierarchy for cash SI’s on DRIPS, STCO and currency options.

– Notification suppression capabilities now help you to manage low-interest alerts.

• Notifications including SWIFT

– Re-notification comments now appear first, followed by original notification comments.

– We clarified the amendments so that users know when a re-notification is issued only because of a position change.

– SSC deadlines are now displayed in the fund response area when options expire earlier than the action.

– All event options are now communicated via MT564 (not MT568).

Cash flow module

• Accounting Messaging Capabilities: Messaging to State Street Accounting platform Multi-Currency Horizon for general ledger postings and cost adjustments; ability to link multiple accounting transactions for one approval; export available for Invest AI for Alternative Investment transactions instructed through eCFM platform.

• Custody Instruction Messaging Capabilities

• eCFM established a connection with various custody downstream systems to allow users to link outgoing money movements to corresponding predefined accounting treatments. eCFM now can be utilized for Fedwires, SWIFT payment initiation, Fund-to-Fund transfers and Indirect FXs.

• Alternative Investment Instruction and Valuation: In 2014, eCFM established the ability to use transactions captured within the system to calculate cash-adjusted market values. The prices are in turn posted directly to our accounting system for daily and monthly valuation.

Transforming payments with State Street Cash ManagerTM

We enhanced global payment functionality through our comprehensive treasury management platform, State Street Cash Manager.

Unattended file import offers straight-through payment processing using a secure, direct-transmission method, eliminating the manual steps of login, file upload, approval and release. A user-defined payment template allows fields to be designated as modifiable or protected during future payment creation. New currencies for payment initiation are: United Arab Emirates dirham (AED), Brazilian real (BRL), Moroccan dirham (MAD), Chinese renminbi (CNY), Romanian leu (RON), and Thai baht (THB).

Quick Inquiry lets you retrieve accurate, real-time account statement and transaction information from the main screen without the need to run a report. ACH reversal and reclaim requests are now submitted and tracked systemically. Electronic Data Interchange (EDI) reporting offers NACHA industry-formatted standards for data standardization of ACH transactions.

STATE STREET


As a result of the expansion of the U.S. Cost Basis regulations and the inclusion of debt instruments, the 1099B report was expanded with additional information specific to regulatory demands, including fields for Interest for Buy-lots, OID for Buy-lots, Market Discount for Buy-lots, Bond Premium for Buy-lots and Acquisition Premium for Buy-lots.

Track and communicate changes in international tax regimes with Global Tax Event Planner

To help you keep up with the rapid pace of constantly evolving custody-related tax processes and regulations, we created a Tax Event Planner tool to track and communicate international tax changes in more than 100 markets. Our client service teams instantly receive email alerts about tax events across the globe, allowing us to assess customer impact, and offer you up-to-the-minute information on tax research, tax reclaim, relief at source, capital gains support and exemption services.

Fund Accounting and Administration

Tax-transparent funds capability

Authorized Contractual Schemes (ACSs) are a new type of common investment vehicles in the UK offering tax transparency to investors. The vehicle is attractive to investors interested in asset pooling and enhances returns by way of economies of scale. It helps you to reduce transaction and administration costs, lower management fees and increase investment diversity.

Springboard Cash Manager, our mobile technology, provides you with enhanced operational efficiency for cash management. The Springboard app can be downloaded from the Apple App Store by Springboard® and State Street Cash Manager users. Senior executives using iPads and iPhones can inquire on cash balances and transactions, and create and authorize U.S. dollar Fedwires, international SWIFT payments and interfund transfers using protected, pre-formatted templates.

Event notification via email or text message delivers updates on cash account balances, transactions and specific payment criteria, as well as on payments awaiting authorization or release. Our mobile technology allows you to efficiently manage critical cash flows during reduced staffing levels or while traveling, as well as for the purpose of business continuity.

Custody Tax Services

Proactive regulatory support

We completed extensive system changes to address IRS regulations regarding client reporting of cost basis for sales of covered debt securities. The State Street accounting system will now report to the IRS activity on simple debt transactions with purchases executed after January 1, 2014. In 2015, we will complete further extensions of the system that will allow us to report the sale of complex debt transactions as of January 1, 2016.

Stay connected and remotely perform cash management

activities

Using our Springboard

app, you have a single

point of access to all of

your State Street

investments and cash

flow activities.

STATE STREET


We launched an ACS with a UK insurance company in December 2014, leveraging decades of experience and state-of-the-art service expertise gained with similar European tax-transparent vehicles. On a daily basis we provide an ACS price with detailed income look-through for onward investor tax provisioning, including loan relationship transactional data for CGT calculations. In addition, we maintain daily-income investor-level records for periodic income-statement reporting.

Enriched data for reporting

Accounting clients will benefit from enriched net asset value (NAV) data, new capital stock reports and new information specific to mortgage-backed securities. Cash projection reports and expanded data retention will also help you to increase overall efficiency and productivity.

• A new Portfolio Valuation Report provides you with all the elements of a portfolio’s total NAV in a single report. Now you can focus on the breakdown of your portfolio NAV by security.

• The new Average Net Asset Report provides the option to review your NAV over a designated time frame.

• Specific to USIS participants, cash movements can be analyzed with 10 new Capital Stock reports. Focus on your redemptions and subscription activity, either daily or monthly for money market and long-term securities.

• The new Detailed Realized Gain Loss Report provides gain/loss information down to the lot level specific to mortgage-backed securities, and it provides the ability to reconcile cost-of-investment proof and complete an investment gain/loss proof.

Tailored fund administration services

We designed the 5500 Reporting service to support you with required filing of the Form 5500 to the Department of Labor and IRS. Our service provides a tailored solution for data collection and ERISA categorization. It supports full electronic submission schedules for vehicles designated as Direct Filing Entities. We use your underlying core accounting and custody data to supply the necessary information for this increasingly scrutinized regulatory filing.

To meet the increasing demand for expanded NAV-based total return calculations and related reporting, we launched our Enhanced Performance Service. Using new vendor-hosted technology, we now have the ability to create customized performance reports of varying file types, to automatically disseminate files to an unlimited number of client-defined destinations, and to easily incorporate comparative and custom benchmarks in client reports. Meanwhile, we began using the NAV Distribution Services (NDS) as our data source for NAV information, allowing for a more straight-through and controlled process.

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additional daily valuation and collateral data requirements (as of August 12).

To help our Italian Pension clients navigate investment and regulatory challenges and developments, we rolled out of a full suite of solutions. The solutions include NAV calculation for pension schemes, enhanced depotbank controls, look-through capabilities, alternative investments compliance monitoring and reporting, performance measurement and attribution, risk analytics, trade cost analysis, derivatives clearing and securities lending, and quantitative risk assessment and optimization services.

Our Enterprise Servicing Platform (ESP) has been successfully deployed for Regulatory Data Management. We completed the first phase of an extensive data management and information delivery solution that significantly enriches reporting capabilities for regulated Superannuation entities in Australia. The Australian Regulatory Services tool set has been implemented to address the latest wave of reforms under the Stronger Super Government Response and to provide the solution for reporting to the Australian Prudential Regulation Authority (APRA). ESP drives the end-to-end data management solution from provisioning through to consumption, providing clients and managers online access to entity-level statistics across more than 200 customized security classifications, and look-through into internal and external trusts, along with derivatives reporting and exposure concentrations, all delivered via

Insurance

Introduction of PAM® for Investments

In 2014, we focused on positioning ourselves to deliver superior reporting capabilities. We implemented a reporting infrastructure with modern, flexible tools that allow you to make more effective use of accounting data. As part of that effort, we developed a new data model for investments, based on PAM for Securities, which significantly increases the availability of key data elements for reporting. Rollout and implementation of the new version of PAM, named PAM for Investments, represents a significant improvement in the underlying technology and user interface. Improvements available to our outsourcing Insurance clients include the introduction of GPS for pricing your equities, the rollout and utilization of a central Security Master File Database for PAM, leveraging the asset control infrastructure, and the rollout of Investment Analytics functionality, using PAM as the source of the investment data.

Regulatory and compliance support

EMEA Investment Servicing offers enhanced reporting and regulatory support

We continue to support our EMEA clients in meeting EMIR trade reporting on Derivatives. The more than 85 reportable fields can be sourced from State Street data and aggregated from you or your designated third parties for complete reporting. The service also extends to the

Our customized

report ing and data

delivery solutions

allow you to

quickly respond to

ongoing regulatory

requirements.

STATE STREET


my.statestreet.com. Our proprietary self-service technology allows data structures to be rapidly configured with robust lineage and traceability, enabling us to quickly respond to ongoing regulatory change and to deliver customized reporting and data delivery solutions. Additionally, the control framework provides Direct to APRA validation services, which enables third parties to submit data directly to the regulator.

Alternatives

Improving reporting flexibility, solution integration and operational capabilities for alternatives

In 2014, Alternative Investment Solutions enhanced our Investor Portal to provide greater transparency for you to view your data and improve straight-through processing. We helped streamline your processes with Dynamic Balance and Transaction Data functionality that allows self-service access to retrieve data via the Investor Portal.

Alternative Investment Solutions updated our Global Fund of Fund (FoF) and Limited Partner (LP) Services Platform for Private Equity and Real Estate to streamline processes for improved operational efficiencies across global business units. Improvements were made to several technology components, including general ledger accounting, automation of cash management, and reconciliation of cash with general ledger entries.

Alternative Investment Solutions integrated the industry-leading iGLS accounting platform with State Street Investment Analytics (SSIA) to offer

performance-reporting services to Hedge Fund clients. Standard services include:

• Daily rates of return and contribution to return calculations at the fund level, as well as the security level.

• Daily returns within various hierarchies, including performance by asset class, country, long/short and GICS Sector.

• Daily benchmark returns, as well as excess returns versus funds.

• Broad selection of money statistics, including dollar-value added (PNL), income, and net cash flow, to name just a few.

• Ability to view performance at gross-of-fees view as well as net-of-fees view.

• Daily returns available via the online dashboard with download capabilities.

• Daily/monthly performance heat maps to break down performance by hierarchy categories.

You may also request these additional services:

• Various risk/return metrics available on a daily basis including Sharpe ratio, information ratio, beta, alpha, R-squared, and Treynor ratio, among others.

• The ability to create customized performance hierarchies and holdings categories.

• The ability to create composites to view aggregate performance by strategy.

• The ability to carve out holdings from within any fund and view performance of customized aliases.

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information in real time. The tool set also includes an enterprise-level data control and monitoring framework providing detective, preventative, corrective, and predictive tools designed to ensure the timeliness and accuracy of data. Controls are configured to interrogate reference, transactional, and valuation data to detect potential problems. ESP represents a “future-proof” data management system that is dynamic, configurable, and scalable to manage your current and future data needs.

Meeting collateral management regulatory challenges

Since 2011, the number of clients subscribing to our Collateral Management Service has grown threefold. We are continuously improving our collateral management services amid a rapidly evolving regulatory environment. The recent introduction of mandated collateral management for forward-settling agency mortgage-backed securities (MBS) trades presents new challenges, which we can help you overcome as part of a holistic collateral management service. We have specific expertise in this area, having provided collateral management services for MBS trades since 2008, and we are now able to leverage the expertise we’ve gained as this practice becomes an industry standard.

To reduce risk and gain efficiency, we continue to expand optical character recognition (OCR) functionality within our Alternative Investment Solutions businesses. This functionality reduces reliance on manual entry while significantly improving our straight-through processing abilities. We completed our pilot implementation within the Private Equity Fund-of-Fund business in 2014, and we plan to expand our OCR solutions to other businesses in 2015.

State Street Investment Manager Services

Investment Manager Services (IMS) is leveraging our new Enterprise Servicing Platform (ESP) as its data engine and data delivery mechanism for all new clients. IMS delivers a full range of services for investment managers including Investment Book of Record (IBOR), reconciliation, trade management services and reporting and analytics. ESP’s tool set control framework is designed to ensure timely, complete and accurate investment data delivery to clients.

Supporting strategic data aggregation and management

We augmented our Enterprise Data Management service to meet your continuously evolving needs. We developed a new real-time, cloud-infrastructure data warehouse called the Enterprise Servicing Platform (ESP). ESP is a powerful data management ecosystem that enables strategic data management and governance. ESP aggregates, rationalizes and transforms data into high-value

Identify what drives

your results

Daily performance data

lets you determine

drivers for virtually any

slice of your portfolio

STATE STREET


Global Services Performance Services

New features for the Investment Analytics reporting tool

Clear and trustworthy investment reporting continues to be a critical tool for communicating investment information throughout an organization. Because of this, we continue to focus resources on improving usability, increasing productivity and adding new features to our core self-service Analytics Reporting Tool (ART). During the second half of 2014, SSIA developed more than 20 enhancements, such as expanded Excel capabilities, customized naming conventions for market data, efficient report package building, period sorting and additional performance statistics.

GASB 67 – Fee and Expense Recognition

GS Performance Services calculates annual money-weighted rates of return, net of pension plan investment expenses in support of GASB 67 reporting requirements. GS Performance Services has enhanced the GASB 67 money-weighted rate of return calculation process to more effectively support your varying fee and expense recognition requirements.

Performance & Attribution

GS Performance Services has enhanced the Performance & Attribution product offering through the introduction of new global attribution calculation options, additional enhanced attribution statistics and overall calculation process streamlining.

Investment Compliance Dashboard (Fail Management)

We have created additional workflow and client alert management capabilities in Fail Management. It allows you to more effectively sign off on alerts, and to quickly add comments to multiple violations, and it provides greater flexibility when filtering your results. We continuously improve our investment compliance services through process automation, improved data throughput, and elevated reporting performance.

THE WAY AHEAD

Minute by minute, the investment environment is shifting. Holding your ground is hard enough. Getting out ahead of your competition and differentiating for your clients is even harder. Today, success comes down to how well you adapt to both challenges and opportunities. So we do more than just launch new products. We craft solutions to help keep your business moving forward.

Disclaimer: Please note: Not all State Street products are offered or available in all jurisdictions.

STATE STREET


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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 $28.19 trillion in assets under custody and administration and $2.45 trillion* in assets under management as of December 31, 2014, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s web site at www.statestreet.com.

* Assets under management include the assets of the SPDR® Gold ETF (approximately $27.3 billion as of December 31, 2014), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

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Exploring New Routes to Opportunity · 2020-05-05 · Exploring New Routes to Opportunity State Street We’re creating new tools and products to position you to realize the immense