State Street Wins $300B Business - Analyst Blog

State Street Corporation (STT) said on Monday that it has expanded its relationship with Morgan Stanley (MS) to provide investment management operations outsourcing services for the assets of Morgan Stanley Investment Management (MSIM) worth about $300 billion. As part of the deal, State Street will absorb 100 employees from MSIM.
 
State Street, one of the world’s leading providers of financial services to institutional investors, will provide services including trade settlement, portfolio administration, and reporting and reconciliation services for most of MSIM’s $386 billion in assets under management.
 
With $17.9 trillion in assets under custody and administration and $1.7 trillion in assets under management as at Sep 30, 2009, State Street operates in 27 countries and more than 100 geographic markets worldwide. The company’s results for the last few quarters have been hurt by the global decline in world stock markets and problems in some of the bond funds it managed. As a result, the company is trying to gain more business by expanding into more complicated areas of money management services such as settling trading orders and reporting on portfolio characteristics. As a market leader, State Street provides services for more than $6 trillion in middle office assets to clients globally and its investment management operations outsourcing solution covers all aspects of the trading cycle.
 
On the other hand, MSIM strives to provide outstanding long-term investment performance, services and a comprehensive suite of investment management solutions to a diverse client base by leveraging its global community of boutiques and the strength of Morgan Stanley.
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