MutualFundWire.com: State Street Enhances Institutional Offerings
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Thursday, October 25, 2007

State Street Enhances Institutional Offerings


State Street has launched an enhancements to its product and technology offerings. The company is expanding its net asset valuation (NAV) distribution capabilities to enhance its offering to mutual fund customers looking to outsource more of their distribution related activities. In addition, State Street is also launching enhancements in the area of SRI investing and liability modeling.


State Street Corporation (NYSE:STT), the world’s leading provider of financial services to institutional investors, today announced recent enhancements to its product and technology offerings to strengthen its industry leading online information delivery tools for online information for its customers.

Net Asset Valuation (NAV) Distribution

State Street is expanding its net asset valuation (NAV) distribution capabilities to enhance its offering to mutual fund customers looking to outsource more of their distribution related activities.

State Street’s NAV distribution services provide mutual fund customers with monitoring against rules and tolerances, decision support comparison and trend analysis. After the customer’s monitoring phase is complete, State Street will customize the results, formatted specifically to the customer requirements and distribute to the customer’s targeted distribution lists.

“These NAV-related tasks, typically done manually, can be costly and prone to errors,” said Patrick Centanni, senior vice president of State Street’s product and technology solutions team. “By outsourcing NAV-related distribution responsibilities, mutual fund companies can reduce risk, eliminate expenses and realign its employee base to more core activities.”

State Street’s NAV distribution service will provide expert capabilities for handling distribution requirements including aggregation, monitoring, and business intelligence for all of its mutual fund customers. It will also ensure that the appropriate information is delivered in a secure, timely, and accurate fashion to each interested party. Furthermore, State Street’s US business operating teams will provide research and support services to all customer inquiries.

Socially Responsible Investing

State Street recently launched enhanced capabilities for compliance and risk monitoring to include the monitoring and detection of portfolio holdings to track companies in violation of socially responsible and country specific investing guidelines.

Through an agreement with Institutional Shareholder Services (ISS), a leading provider of corporate governance, environmental and SRI data, State Street can now monitor, detect, and deliver valuable information to its customers in support of highly sensitive restrictions.

State Street compliance specialists now have the ability to leverage the flexibility of a compliance application to test investment criteria, including alcohol, animal welfare, gambling, emissions, chemical and oil spills, among other categories. Additionally, State Street is now able to utilize the same business processes and technologies for country specific governance policies.

To further enhance the offering, State Street’s customer compliance results will be delivered via my.statestreet.com’s compliance dashboards, which offer State Street customers a secure and convenient portal to view alerts, status updates and monitor progress towards resolution.

Liability Modeling

State Street has introduced a solution for liability modeling which allows customers to view their future liability cash flows as line items within a portfolio. The liability instrument can be set up as one distinct instrument or as a series of distinct instruments. This capability allows customers to have the flexibility of viewing their liability structure on-line, as well as being able to leverage the risk application’s comprehensive functionality features such as stress testing, shocks and ”what-if” analysis for the liability structure, along side their invested assets.

Customers, such as pension funds, require the integration of liabilities derived by their actuaries into the risk-measurement systems in order to help them monitor asset allocation strategies which keep pace with movements in their liabilities.

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 US$15.1 trillion in assets under custody and US$2.0 trillion in assets under management, as of September 30, 2007, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s website at www.statestreet.com.


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