For most of the 1990s, the German fund industry experienced a period of exceptional growth (CAGR of approximately 18%) while benefiting from a seemingly endless net inflow of cash. Currently, the local market is characterised by declining revenues, increased competition and rising cost pressures.

This rapidly changing environment presents enormous challenges to KAGs seeking to deliver improved performance for existing clients while managing new business growth. With operational and organisational issues becoming more costly and time-consuming, the ability to outsource non-core competencies enables you to support timely product development, achieve global expansion and keep up with industry requirements to help your clients reach their investment goals.

Instead of managing high-risk, capital-intensive investment servicing functions on your own, you can outsource all or a portion of them to State Street. Our outsourcing team, experienced in servicing both local and global asset management business, is currently establishing capabilities to effectively deliver a full range of flexible, customised back-office solutions that enable you to leverage our strengths — so you can maintain your primary focus on your core competencies.

Based on individual needs, our comprehensive, customisable outsourcing services may include:

• Transaction processing
  
• Accounting
  
• NAV and unit price calculation
  
• Data management
  
• Reconciliation (front/middle-office, depotbank)
  
• Reporting (legal, client and internal)
  
• Post-trade compliance

As your partner, State Street will work with you through the entire outsourcing process, starting with initial workshops to define scope and timeline, following detailed due diligence procedures and executing a successful migration of funds. Depending on your needs, this process may include mapping current and future functional and IT models, interfaces and handovers; defining service levels; planning the migration and setting up the project teams of both parties.

Our focus on flexibility enables us to design custom outsourcing solutions that will support your long-term business strategy. We can serve as your back office, providing superior, integrated technology and dedicated staff support to manage your day-to-day operations seamlessly. We can also incorporate your back-office employees, technology and infrastructure into our organisation, retaining the skill and expertise of your own operations staff.

For more information on our outsourcing capabilities, please contact Jörg Ambrosius, via phone at +49 89 55878 133 or via email at jambrosius@statestreet.com.