Promised land draws nearer
State Street says it still has “work to do” on integrating the Global Securities Services business it bought a year ago – but insists the integration was going well.
“We still have work to do in Europe, where client conversions are currently underway,” said chairman and chief executive David Spina. “However, it is already clear that we have realised the promise of this acquisition.”
The Boston-based bank bought GSS from Deutsche Bank for $1.5bn (E1.1bn) and completed the primary closing of the deal in January 2003.
“The pace and excellence with which we have been able to integrate this business is a testament to our employees worldwide – including those who joined us during the acquisition.”
It says it has met or exceeded “its major performance and financial goals associated with this strategic expansion”. These included: retaining client revenue, operating the business at a profit in 2003 and the completion of most client conversions by mid-2004.
Spina added: “We have expanded our market leadership across all of the client groups we serve including public funds, nonprofit entities, collective investments and pension funds.
The group has $9.4trn in assets under custody and $1.1trn under management.
Meanwhile, its State Street Global Advisors arm said in a release that it had won 23 mandates in Germany and Austria in 2003 and that its assets under management rose by more than 50%.
“Client demand continues for our traditional competence in index-oriented investments along with enhanced stock strategies and tactical asset allocation,” says Klaus Esswein, managing director of SSGA Germany.