State Street Corporation · NYSE:STT
State Street — Bank of America Merrill Lynch Banking & Financial Services Conference 2015
17 slides from State Street's conference presentation, Nov 17, 2015
Slide 1: Building on Core Strengths to Drive Growth
State Street Global Advisors Building on Core Strengths to Drive Growth Bank of America Merrill Lynch Banking & Financial Services Conference Ronald P. O’Hanley CEO, State Street Global Advisors Executive Vice President, State Street November 17, 2015 State Street Corporation (STT: NYSE)
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance and stra
Slide 3: SSGA well positioned to benefit from asset management industry trends
SSGA well positioned to benefit from asset management industry trends and State Street’s global scale, infrastructure and relationships Europe, Middle State Street Americas: East & Africa: Asia Pacific: Overall: Revenue: $5.9B Revenue: $3.4B Revenue: $0.9B AUA: $21.22T AUA: $5.63T AUA: $1.34T Revenu
Slide 4: Highly developed global investment, product and distribution capabilities
Highly developed global investment, product and distribution capabilities Investment Product Distribution 9 Investment Centers 11 Product Domiciles ~70 Countries With Clients • Full beta and • Globally organized • Deep institutional quantitative capabilities team penetration • Specialty active • Cro
Slide 5: Top three global asset manager advising significant share of investable assets
Top three global asset manager advising significant share of investable assets Ranking Asset Manager AUM ($B) 1 BlackRock $4,652 2 Vanguard $3,148 3 SSGA $2,448 4 Allianz $2,189 5 Fidelity Investments $1,974 6 J.P. Morgan Chase $1,749 7 Bank of New York Mellon $1,710 8 AXA Group $1,491 9 Capital Gro
Slide 6: Deep penetration of world's most sophisticated clients
Deep penetration of world’s most sophisticated clients AUM $B #1 US Endowment and Foundation #1 Worldwide Central Bank $66 $166 $153 $123 $44 $32 $25 $19 $36 $31 SSGA VAN WMC NTRS BK SSGA Pioneer BLK NTRS JPM #2 US Defined Benefit #2 Worldwide Sovereign Wealth $497 $126 $113 $376 $93 $88 $72 $205 $1
Slide 7: Well positioned in fast growing core segments
Well positioned in fast growing core segments AUM $B Index Managers Excluding ETFs1 Global ETFs2 $1,024 $1,996 $1,959 $1,522 $469 $416 $456 $430 $94 $83 VAN BLK SSGA NTRS L&G BLK VAN SSGA IVZ DB US Defined Contribution3 $706 $620 $585 $409 $289 $273 VAN Fidelity BLK TIAA TROW SSGA 1. Pensions and In
Slide 8: Industry trends create opportunities and challenges
Industry trends create opportunities and challenges Defined Expanded Defined Strong ETF benefit Influencecontribution of Growth expansion shrinkage Official Globally Institutions Growth in alternatives Global Shift From Defined Disruptive Demand for Benefit to Outcomes / DefinedBarbell product Trend
Slide 9: Solutions, Passives and Alternatives growing at expense of Active
Solutions, Passives and Alternatives growing at expense of Active Global Asset Management Industry AUM ($T) AUM Estimated Share of CAGR Cumulative Net Flows 2003-2014 $36 $74 2015 – 2018 +15% $2 / 6% $9 / 13% Solutions 37% +13% $3 / 8% +13% $2 / 6 % $11 / 14% Passive / ETFs 35% +8% $8 / 21% $8 / 11%
Slide 10: Growth Priorities
Growth Priorities Extend core investment capabilities to deepen and broaden penetration of client base while capitalizing on industry trends Global Beta Official Defined Global ETFs Solutions Revolution Institutions Contribution Talent Investment Capabilities Operations / Information Technology Risk
Slide 11: Priority: Beta Revolution
Priority: Beta Revolution Extend deep beta and quant expertise to provide next generation solutions Traditional Beta Smart Beta Alternative Beta • Equities • Low Valuation • Market Neutral Value / • Credit • Small Size Quality / Momentum • Rates • High Momentum • Risk Neutral Low Volatility • Real A
Slide 12: Priority: Global Defined Contribution
Priority: Global Defined Contribution Capture disproportionate share of the retirement shift to DC Global DC Market ($T)1 Key Initiatives CAGR $17.0 • Extend Global Reach: 9% ‒ Leverage current DB footprint $15.0 and presence $13.0 ‒ Help plan sponsors provide $12.0 $12.0 better outcomes to plan par
Slide 13: Priority: Global ETF
Priority: Global ETF Meet growing client demand as the ETF market evolves and use cases broaden Global ETF Market ($T)1 Key Initiatives • Grow market share in EMEA $5.1 and APAC: ̶ Expand intermediary outlets CAGR $4.4 17% ̶ Broaden salesforce $3.8 • Leverage deep institutional client relationships
Slide 14: Priority: Official Institutions
Priority: Official Institutions Sustain our leadership as a trusted advisor in this emerging segment Global Sovereign Wealth Fund AUM ($T)1 13% Key Initiatives CAGR $7.1 $6.1 $4.8 $5.2 • Support central banks as they $4.4 broaden market participation activities • Provide tools / solutions to both ou
Slide 15: Priority: Solutions
Priority: Solutions Deliver outcome-oriented solutions to meet clients’ customized and packaged needs Global Solutions AUM ($T)1 Key Initiatives • Continue to act as trusted advisor CAGR by providing benchmark-agnostic 9% solutions: $7.2 ‒ Customized outcomes to meet $6.6 specific institutional clie
Slide 16: SSGA building on core strengths to drive growth
SSGA building on core strengths to drive growth Global franchise Highly leveragable client base Core investment capabilities well aligned with industry trends Focused priorities to drive growth 16
Slide 17: Q&A
17 O&A STATE STREET.
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