State Street has acquired Complementa Investment-Controlling AG, an investment performance measurement and analytics firm based in St. Gallen, Switzerland. The acquisition also includes wholly-owned subsidiary Allocare AG, a leading Swiss asset management software provider.
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.
*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.
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.