State Street Announces Acquisition of Complementa Investment-Controlling AG in Switzerland
October 04 2011 - 4:07AM
Business Wire
State Street Corporation (NYSE: STT), one of the world’s leading
providers of financial services to institutional investors,
announced today that it has acquired Complementa
Investment-Controlling AG, an investment performance measurement
and analytics firm based in St. Gallen, Switzerland.
Complementa is a recognized leader in the precise and
independent consolidation of assets, performance measurement and
investment controlling for institutional and large private
investors. The firm provides services to asset managers, banks,
pension funds, family offices, insurance companies, foundations and
trustees primarily based in Switzerland and Germany.
The acquisition also includes wholly-owned subsidiary Allocare
AG, a leading Swiss asset management software provider.
(Complementa’s HedgeAnalytics business is excluded from the
transaction.) Benjamin Brandenberger, founder and Chairman of
Complementa, and Michael Brandenberger, CEO and President of
Complementa will serve as board members (Verwaltungsrat) and be
actively involved in the business. Andreas Joost, already a member
of the Complementa managing board, will take over the CEO position
and manage Complementa's business. Complementa will be a
wholly-owned subsidiary of State Street and will retain its name
and identity.
“Today’s announcement enables Complementa to affiliate with a
leading, global analytics organization,” commented Benjamin
Brandenberger. “This transaction gives us access to State Street’s
global capabilities and the potential to extend the current product
suite offered to our clients for their global portfolios, all while
maintaining the ability to provide our clients the high quality,
precise service to which they are accustomed.”
“The acquisition of Complementa is further evidence of State
Street’s full commitment to and investment in the Swiss market,”
said Joe Antonellis, vice chairman of State Street.
“Complementa is a premier provider of investment analytics to
the Swiss market and has maintained this position consistently for
more than 25 years. We look forward to bringing its precision in
process to our clients globally.”
Antonellis continued “The business fits well alongside State
Street’s current leading investment analytics business and provides
us with further opportunity to expand our offering across Germany,
the Netherlands, Italy and other European and global markets.”
State Street Investment Analytics currently serves approximately
1,400 clients with aggregate asset volumes exceeding $10 trillion
(as of June 30, 2011), offering comprehensive services in
performance, risk and strategic analysis that help clients monitor
and measure the success of their investment strategies in any
market and in any asset class, including alternative
investments.
State Street opened its original office in Zurich in 1998 and
has developed a comprehensive suite of valued-added investment
services for its clients, including enhanced reporting, risk and
transaction cost analysis, performance measurement and regulatory
compliance customized to meet local requirements. In 2008, State
Street acquired Deutsche Bank’s fund accounting operations in
Switzerland, expanding its investment servicing capabilities for
the local market. With the acquisition announced today, State
Street now employs approximately 200 professionals in
Switzerland.
About State Street
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 $22.8 trillion in assets
under custody and administration and $2.1 trillion* in assets under
management at June 30, 2011, 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.*This AUM includes the assets of the SPDR Gold
Trust (approx. $58 billion as of June 30, 2011), for which State
Street Global Markets, LLC, an affiliate of State Street Global
Advisors serves as the marketing agent.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by United States securities laws, including statements relating to
our acquisition of Complementa Investment-Controlling AG, our plans
for, and the impact of, that acquisition and related rationales, as
well as about our goals and expectations regarding our business,
performance and strategies and the business environment.
Forward-looking statements are often, but not always, identified by
such forward-looking terminology as "plan," "expect," "look,"
"believe," "anticipate," "estimate," "seek," "may," "will,"
"trend," "target,” and "goal," or similar statements or variations
of such terms. These statements are not guarantees of future
performance, are inherently uncertain, are based on current
assumptions that are difficult to predict and involve a number of
risks and uncertainties. Therefore, actual outcomes and results may
differ materially from what is expressed in those statements, and
those statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to October 4,
2011. Important factors that may affect future results and outcomes
include, but are not limited to:
- the risks that Complementa’s business
and products will not be developed or expanded or accepted into
State Street’s broader services, customers and geographies, that
this development or expansion will be delayed, that anticipated
synergies will not be achieved or unexpected disynergies will be
experienced, that client retention goals will not be met, that
other regulatory, personnel or operational challenges will be
experienced and that disruptions from the transaction will harm
relationships with clients, personnel or regulators;
- the manner in which the Federal Reserve
and other regulators implement the Dodd-Frank Act and other
regulatory initiatives in the U.S. and internationally, including
any increases in the minimum regulatory capital ratios applicable
to us and adjustments that result in changes to our operating model
or other changes to the provision of our services in order to
comply with or respond to such regulations;
- required regulatory capital ratios
under Basel II and Basel III, in each case as fully implemented by
State Street and State Street Bank (and in the case of Basel III,
when finally adopted by the Federal Reserve), which may result in
the need for substantial additional capital or increased levels of
liquidity in the future;
- changes in law or regulation that may
adversely affect our, our clients’ or our counterparties’ business
activities and the products or services that we sell, including
additional or increased taxes or assessments thereon, capital
adequacy requirements and changes that expose us to risks related
to compliance;
- financial market disruptions and the
economic recession, whether in the U.S. or internationally;
- the liquidity of the U.S. and
international securities markets, particularly the markets for
fixed-income securities, and the liquidity requirements of our
clients;
- increases in the volatility of, or
declines in the levels of, our net interest revenue, changes in the
composition of the assets on our consolidated balance sheet and the
possibility that we may be required to change the manner in which
we fund those assets;
- the financial strength and continuing
viability of the counterparties with which we or our clients do
business and to which we have investment, credit or financial
exposure;
- the credit quality, credit agency
ratings, and fair values of the securities in our investment
securities portfolio, a deterioration or downgrade of which could
lead to other-than-temporary impairment of the respective
securities and the recognition of an impairment loss in our
consolidated statement of income;
- delays or difficulties in the execution
of our previously announced business operations and IT
transformation program, which could lead to changes in our
estimates of the charges, expenses or savings associated with the
planned program, resulting in increased volatility of our
earnings;
- the maintenance of credit agency
ratings for our debt and depository obligations as well as the
level of credibility of credit agency ratings;
- the ability to complete acquisitions,
divestitures and joint ventures, including the ability to obtain
regulatory approvals, the ability to arrange financing as required
and the ability to satisfy closing conditions;
- the performance of and demand for the
products and services we offer, including the level and timing of
redemptions and withdrawals from our collateral pools and other
collective investment products;
- the possibility that our clients will
incur substantial losses in investment pools where we act as agent,
and the possibility of significant reductions in the valuation of
assets;
- our ability to attract deposits and
other low-cost, short-term funding;
- potential changes to the competitive
environment, including changes due to the effects of consolidation,
and perceptions of State Street as a suitable service provider or
counterparty;
- the level and volatility of interest
rates and the performance and volatility of securities, credit,
currency and other markets in the U.S. and internationally;
- our ability to measure the fair value
of the investment securities on our consolidated balance
sheet;
- the results of litigation, government
investigations and similar disputes or proceedings;
- our ability to control operating risks,
data security breach risks, information technology systems risks
and outsourcing risks, and our ability to protect our intellectual
property rights, the possibility of errors in the quantitative
models we use to manage our business and the possibility that our
controls will prove insufficient, fail or be circumvented;
- adverse publicity or other reputational
harm;
- our ability to grow revenue, attract
and/or retain and compensate highly skilled people, control
expenses and attract the capital necessary to achieve our business
goals and comply with regulatory requirements;
- the potential for new products and
services to impose additional costs on us and expose us to
increased operational risk;
- changes in accounting standards and
practices; and
- changes in tax legislation and in the
interpretation of existing tax laws by U.S. and non-U.S. tax
authorities that affect the amount of taxes due.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2010 Annual Report on Form 10-K and
our subsequent SEC filings. We encourage investors to read these
filings, particularly the sections on risk factors, for additional
information with respect to any forward-looking statements and
prior to making any investment decision. The forward-looking
statements contained in this presentation speak only as of the date
hereof, October 4, 2011, and we do not undertake efforts to revise
those forward-looking statements to reflect events after that
date.
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