State Street Research Reveals Cross-Border Strategies are Rapidly Gaining Traction in Light of Brexit

More Than Half of Asset Managers Plan to Hire in New Locations

Monday, July 30, 2018 11:17 am EDT

Dateline:

LONDON

Public Company Information:

NYSE:
STT
"Asset managers must stay nimble to thrive in this new market environment"

LONDON, 30 July, 2018 -- State Street Corporation (NYSE: STT) today announced the latest findings from its research, the State Street 2018 Fund Strategy Survey [1], which surveyed 250 asset managers globally and analysed how they are developing cross-border strategies, including the factors influencing their choice of fund vehicle, passport and domicile location.

According to the survey, more than half (54 percent) of asset managers are reshaping their distribution strategy and expect to increase their staffing levels in new locations in response to Brexit within the next five years.

“Asset managers must stay nimble to thrive in this new market environment,” said Liz Nolan, State Street’s chief executive officer for EMEA. “The impact of Brexit is complex, particularly given the uncertainty surrounding negotiations. Our findings highlight how asset managers are proactively tackling the challenges it presents, and safeguarding their ability to support clients, remain competitive and access markets in a post-Brexit world.”

As Brexit negotiations persist, almost half (46 percent) of respondents believe there will be an increased fragmentation of fund regulations in Europe over the next five years. This result no doubt reflects concerns about post-Brexit divergence between European and UK approaches to capital markets and investment regulation — a concern that is backed by the growth in managers planning to use the UK as a domicile in the future; with more than half (51 percent) planning to target the UK as a future domicile of choice for product distribution — a nine-percent increase from today.

“Despite the ongoing geopolitical dynamics, the data shows managers realise that, whatever barriers to trade and international cooperation may grow out of these dynamics, maintaining access to global markets and investors around the world remains essential to their business models, as well as to the institutions and individuals who rely on them for their savings and investments,” said David Suetens, head of State Street in Luxembourg.

“What is key for asset managers is the need for a partner that offers stability in uncertain times, as well as innovative solutions to navigate challenges,” said Akbar Sheriff, head of State Street Global Services in the UK. “With Brexit firmly on the horizon, this is more evident than ever, with 64 percent of asset managers having an appetite to launch cross-border products in the next five years; ensuring they retain the ability to offer products to their client base. In particular, we have seen an increasing number of EU 27 and internationally based asset manager clients making enquiries about UK fund launches, and we are supporting them accordingly with their planning and due diligence.”

To access the full findings, click here.

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 $33.90 trillion in assets under custody and administration and $2.70 trillion* in assets under management as of June 30, 2018, 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 website at www.statestreet.com

*This figure is presented as of June 30, 2018 and includes approximately $53 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.


This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.  Investing involves risk including the risk of loss of principal.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.  

 

© 2018 State Street Corporation - All Rights Reserved

State Street Corporation, One Lincoln Street, Boston, MA 02111-2900

 

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Expiration date: 07/31/2019


[1] State Street commissioned Oxford Economics to conduct a global survey of 250 asset managers, during May and June of 2018. Respondents represented organizations that are distributing products outside their home markets or considering doing so. The survey explores how asset managers are approaching the selection of fund vehicles and domiciles to advance their distribution strategies.

 

Contact:

Alice Westwell
020 395 2673
awestwell@statestreet.com
@StateStreet

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