State Street to Provide Data-Driven Geopolitical Risk Insights to Clients
July 11 2023 - 9:30AM
Business Wire
- Collaboration with GeoQuant will add GeoQuant’s geopolitical
risk indicators to State Street’s existing suite of high-frequency
inflation, institutional flow, media sentiment and risk
indicators
- Capability will further enhance State Street’s market-leading
macro strategy and quantitative research franchise
State Street Corporation (NYSE: STT) announced today that it has
entered into an arrangement with GeoQuant, a Fitch Solutions
Company, to make available geopolitical and country risk indicators
produced and calculated by GeoQuant in State Street’s own macro
strategy research. The GeoQuant indicators measure and predict
political risk daily and systematically with a fusion of PhD-level
political and computer science. The full suite of GeoQuant’s
indicators are available on a subscription basis exclusively from
GeoQuant. GeoQuant is also developing, with input from State
Street, a new indicator designed to capture the links between
geopolitical risk and market risk.
The GeoQuant indicators and commentary will be made available
via the Global Markets Insights platform, which provides clients
data-driven indicators and investment ideas derived from
high-frequency inflation, media sentiment and investor flows,
informed by data from State Street’s position as a servicer to
$37.6 trillion in assets as of March 31, 2023. This capability
enhances State Street Global Markets’ market-leading research
franchise1 for the firm’s institutional clients globally.
“Geopolitical events such as elections, political unrest, and
economic policy decisions can have huge impacts on financial
markets,” said Will Kinlaw, head of research for State Street
Global Markets. “Understanding the impact of these seismic
events, from scheduled election cycles to sudden geopolitical
unrest or flashpoints, is crucial to informing risk management
analysis, asset allocation and portfolio construction. Our clients
are increasingly seeking hard data, indicators and prediction
models for these kinds of events, and by collaborating with
GeoQuant we are able to bring quantitative rigor to an area that
has historically been more challenging for investors to decipher
and forecast.”
GeoQuant’s approach starts with the accepted “ground truths” in
contemporary political science that define the core drivers of
political change—explicitly and systematically measuring the
fundamentals of political risk. It then uses computer science to
integrate those fundamentals into real-time assessments of
governance, social and security conditions, drawn from credible
data and media sources locally, regionally and globally available
across several languages. The result is systematic and adaptive
data, with the potential to connect the dots between politics,
economics and markets.
GeoQuant’s political risk indicators quantify 40+ political
risks across 127 countries. The data is updated hourly by
AI-machine learning algorithms and vetted daily by a global team of
PhD-level political scientists and experts. GeoQuant indicators are
designed to predict political risk both within and across
countries, and can be integrated directly into economic and risk
models.
"State Street is an ideal partner for integrating political risk
more systematically into investment research, and ultimately
investment decisions. We are thrilled to be working with their
market-leading research team," said Mark Y. Rosenberg, Founder and
Co-Head of GeoQuant.
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 $37.6 trillion in assets
under custody and/or administration and $3.6 trillion* in assets
under management as of March 31, 2023, State Street operates
globally in more than 100 geographic markets and employs
approximately 43,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of March 31, 2023 includes
approximately $59 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. Investing involves risk
including the risk of loss of principal.
© 2023 State Street Corporation - All Rights Reserved
5800106.1.1.GBL.RTL
1 Voted #1 in quant research and #1 in macro research by
Euromoney 2022
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Media: Brendan Paul Bpaul2@statestreet.com +1 401 644
9182
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