[ S U R V E Y
|
M U T U A L
F U N D
State Street
Up to $100 million
$100 million to $250 million
A D $250
M I N million
I S T to R $1 A billion
T I O N ]
$1 billion to $5 billion
$5 billion to $10 billion
$10 billion to $50 billion
Over $50 billion
N/A
State Street client size (AuM) MFA overall client size (AuM)
MFA overall client size (AuM)
State Street client size (AuM)
The size of State Street’s mutual fund administration business
is
not reflected in this year’s response base, which is 25% smaller
than last year’s. It has, however, continued the decline in client
perception recorded in 2016. While scores have improved in
three areas – Transfer Agency (+5.68), Compliance and Regu-
lation (+0.32) and Reporting (0.10) – it has fallen in other areas,
most notably Value Delivered, which now scores a frankly inade-
quate 3.97. Relationship Management and Client Service records
a merely satisfactory 4.44, down 0.66 points.
Client comments are sparse. One notes that it has had a long-
Up to Up
$100
million
Up to Up
$100
million
term relationship with State Street “and knows our business
to $100
million
to $100
million
$100 million to $250 million
$100
million
to $250 million
and processes.” The client lauds the bank’s “ability to leverage
$100 million to $250 million
$100 million to $250 million
$250 million to $1 billion
$250 million to $1 billion
a centralised client service team across multiple jurisdictional
$250 to
million
$1 billion
$250 million
$1 billion
$1 billion
$5 to
billion
$1 billion
to $5 to billion
service sites.” It also describes State Street’s technology platform
$1 billion
to
$5 billion
$1 billion
to $10
$5 billion
$5
billion
to
$10
billion
$5
billion
to
billion
as “flexible and user-friendly.” Nevertheless, the same client
$10 billion
to to $50
billion
$10 billion
billion
$5 billion
$10 billion
$5 billion to to $50
$10 billion
points to “errors processing trades that require manual touch-
Over $50
billion
Over $50
billion
$10 billion
to $50 billion
$10 billion
to $50 billion
points. Billing has been problematic and continues to be an area
N/A Over $50 billion
N/A Over $50 billion
of focus.”
N/A
N/A
At an individual question level, only one score is 6 or above:
accuracy of records of investors intermediaries. This is also the
most improved result for State Street, up 1.03 points on last year.
Other specific functions to record notable improvements in MFA overall client size (AuM)
per-
State Street scores by type of fund managed
ception include timeliness and accuracy of regulatory reports,
Equity
Non-equity
All
up 0.94 to 5.64 and ability and effectiveness in providing trustee
Relationship Management and Client Service
4.33
3.33
4.44
services, up 0.71 points to 5.40.
Value Delivered
4.00
2.00
3.97
The majority of movement h as been in the other direction, how-
ever. The largest negative movements are for value received for
Fund Accounting And Valuation
4.00
5.00
5.49
fees paid (down 1.28 to 3.71) and competitiveness of fees charged
Transfer Agency
n/a
n/a
5.68
(down 1.05 to 4.22). Distribution Support, which last year scored
Distribution
Support
n/a
n/a
n/a
reasonably well, is not rated by this year’s respondents.
Fund Reporting
4.00
4.50
4.70
In the absence of provider comment and with few respondents
Up to $100 million
providing extra colour through freeform comment, it is unclear,
Compliance
5.67
5.00
5.25
$100 million to $250 million
why State Street should be stuck on this downward trend. Scores
$250 million
to $1 billion
Operations
and custody
5.00
4.00
5.23
are, however, now reaching a level where it will be hard to use
$1 billion to $5 billion
4.50
3.97
4.97
its performance to attract new business though it is unlikely that
$5 billion to $10 billion
existing clients will be motivated to look elsewhere, given State
$10 billion to $50 billion
Street’s traditional position as a provider to some of the largest
Over $50 billion
State
N/A Street overall scores
and most complex mutual funds.
State Street scores versus market average
2017 2016 2015
Difference:
2016-2017
Weighted share (%) 2.31 4.79 9.41 Relationship Management and Client
Service 4.44 5.10 5.08 -0.66
2017 All Difference Relationship Management and Client Service 4.44 6.28 -1.84 Value Delivered 3.97 6.05 -2.08 Fund Accounting And Valuation 5.49 6.42 -0.93 Value delivered 3.97 5.27 5.13 -1.30
Transfer Agency 5.68 6.54 -0.86 Fund accounting 5.49 5.60 5.82 -0.11
Distribution Support n/a 6.14 n/a Transfer Agency 5.68 5.10 5.08 0.58
Fund Reporting 4.70 6.22 -1.52 Distribution support n/a 5.89 7 n/a
Compliance 5.25 6.56 -1.31 Reporting 4.70 4.60 5.47 0.10
Operations and custody 5.23 6.17 -0.94 Compliance and regulation 5.25 4.93 5.85 0.32
4.97 6.30 -1.33 Operations and custody 5.23 5.61 5.77 -0.38
Summer 2017
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