State street alpha

State street alphasm

Setting a new
industry standard

John Plansky

State street alphasm

Setting a new industry standard

We are living up to the promise of our interoperable platform. Partners want to work with us because of our open architecture.

John Plansky Head of State Street Alpha, Boston

For years institutional investors have grappled with volatile markets, shrinking margins, the challenge of regulatory tightening, and the breakneck pace of technology transformation. Wreaking further disruption, the pandemic prompted our clients around the world to take stock of what the upheaval in markets, operations, and technology means for their future. The crisis has reinforced the pressure on asset managers and asset owners to re-engineer their operating models and redefine their relationships with service providers like State Street.

As they reassess their current and future requirements, our clients are looking to us to help them achieve faster time to market, greater data accuracy, and improvements in resiliency, efficiencies, and scale — so they can stay focused on finding new growth opportunities and delivering on their core competitive differentiators.

Our Industry-Leading Front-to-Back Platform

Our solution is State Street AlphaSM, the first front-to-back asset servicing platform from a single provider for institutional and wealth management firms. Alpha brings together our clients’ choice of real-time data and asset intelligence across the investment life cycle to help them make better decisions and deliver growth for their clients.

Alpha manages the full spectrum of investment servicing operations, providing a range of users — whether portfolio managers, traders, or operational oversight teams — with the ability to connect and normalize data from multiple sources, and to deliver timely insights while simplifying the user experience for both assembling and consuming this information from a single application.

By automating workflows and streamlining operations, the platform drives greater efficiency, increases transparency, and reduces manual touchpoints, thereby lowering risk and shrinking the potential for data discrepancies.

The Alpha platform positions clients to increase productivity while reducing operational and technology expenses; achieve productivity and scale efficiencies while reducing costs for business continuity and operational risk exposure; and shift funding for capital expenditure investments to their core business functions.

The global scale of the Alpha platform empowers clients to enter and grow in new regions and markets, and launch new products. Its end-to-end analytics delivered via proprietary offerings, partnerships, and client co-developed solutions support portfolio expansion and diversification. And its fully automated real-time cash management provides a centralized view of actionable cash across the enterprise.

The platform’s open-architecture design makes it compatible with third-party solutions, allowing clients to keep current vendors or construct a multi-provider configuration that works best for them. In this complex and frequently changing business, we want to provide more flexibility and simplicity for our clients, not less.

While learning to service our clients from remote working environments in 2020, we continued to reinvest in the platform to expand core capabilities, add new functionality, leverage emerging technologies, and integrate with leading data and technology providers.

As a result, our Alpha platform gained further momentum and broader market adoption, strengthening our position as an enterprise outsourcing solution and front-to-back platform provider.

Spiros

Data is the lifeblood of any organization; a huge focus of our Alpha solution is on improving the entire data ecosystem.

Spiros Giannaros President and CEO
of Charles River Development, Boston

Voice of the client

Vontobel

Felix Lenhard, COO, Member of the Global Executive Board

The high-quality, scalable operating model we gain with Alpha will help us provide best-in-class services to our portfolio managers and supporting functions. Because the platform lets us expand connectivity with custodians and brokers, we can improve our client servicing.

Voice of the client

Janus Henderson

Ewen Melling, Head of Technology Delivery

We’re excited by the steps that Charles River is taking to deploy software and technologies to clients more quickly, and how that will help us move forward faster.

The Charles River Advantage

Our single-platform approach seamlessly connects State Street’s core functions of back-office custody, fund administration, and transfer agency services; middle-office outsourcing services including trade execution, performance analytics, and data services; and the Charles River Development front-office investment management platform we acquired in 2018. Together with State Street’s middle- and back-office capabilities, Charles River Investment Management Solution forms the foundation of State Street Alpha.

In 2020, we won new business and maintained a strong sales pipeline at Charles River. Standalone revenue rose 14%, helped by gains in its Software as a Service (SaaS) and professional service revenues. We also integrated Charles River and other State Street technologies to bring a more seamless experience to clients, including integrating our Global Markets offerings and developing end-to-end cash management solutions.

During the year, we continued our commitment to extending Charles River’s wealth management offerings with Wealth Hub, a cloud-based, secure communications platform that connects asset managers with wealth managers — such as banks, broker dealers, and wire houses — that manage client relationships. The platform provides more reliable, secure, and auditable transmission of data than email, and eliminates error-prone manual workflows.

Migrating Alpha clients to the cloud enables us to more quickly deploy client environments and launch new products and services, while gaining increased data and computing capacity. Clients began a successful shift to our Microsoft® Azure-based strategic cloud platform in 2020.

Madeline Duffy

Support for our clients went far beyond proving our strength and resilience in business continuity; we focused on helping them grow. As more clients consider outsourcing non-core tasks, they are recognizing the benefits of Alpha’s open architecture and data management platform.

Madeline Duffy Global Head of Alpha Middle-Office Services, London

Alpha Innovation and Performance

Alpha was up and running at several client sites in 2020, including our first front-to-back client in Southeast Asia. A clear articulation of our strategy, along with an ability to show a live proof of concept, helped us advance sales discussions and sign six new Alpha clients in 2020, including three in the fourth quarter.

During the year, we added functionality to help resolve data management issues that our clients commonly confront, arising from disconnected data repositories, disparate data types and sources, and fractured delivery processes.

In December, we launched the Alpha Data Platform, an end-to-end data management and warehouse solution for institutional investment and wealth managers that enables clients to seamlessly assemble and access investment data spanning internal and third-party services across their investment processes. It provides access to front-office data in near real time, and incorporates data catalog and visualization capabilities that result in higher quality data, while reducing cost and accelerating decision-making.

By partnering with industry innovators such as Snowflake® and Microsoft,® our platform provides investment managers with access to trusted data from across Alpha, as well as a broad spectrum of data in Snowflake’s Data Marketplace. We also fortified the Alpha platform by adding new software and functionality to streamline and simplify clients’ investment processes and solve complex data challenges.

Reflecting Alpha’s open architecture value proposition, we formed new partnerships with leading analytics providers (Axioma, MSCI, and Solovis), trading platforms (MarketAxess, Tradeweb, and Broadridge LTx), and data and data-warehousing providers (Snowflake and ICE).

Since our 2018 acquisition of Charles River, we have added more than 160 partners across our Alpha ecosystem, supporting our trading, analytics, and data tools and platforms. Our goal is to find the fastest and most efficient way to add new functionality, whether we acquire it, invest in it, or design it in-house.

Trevor Rozier

The Alpha Services transformation effort launched this year focuses on reducing unit-cost-of-service through process improvements and technology enhancements. Our client service commitments remain paramount, and 2021 will see us fully mobilize around our revenue-enhancing and cost-savings initiatives.

Trevor Rozier-Byrd Head of Retail Separately Managed Account Servicing, Boston

Providing a Platform for Growth

We have been delivering value to clients for 228 years, focusing on the future to help solve tomorrow’s challenges today. Alpha and Charles River are critical enablers of our strategy and core revenue growth plan. Adopting the Alpha platform positions clients to deliver differentiated capabilities and increase productivity while reducing expenses.

For existing clients that are transforming their operating model either through front-to-back consolidation or through consolidation of State Street as their sole provider, these expanded relationships are expected to drive increased revenue opportunities.

We continue to enhance the Alpha platform’s functionality and integration, transforming the way we engage with our clients while providing them with the insights, services, and technology they need to grow and adapt. Alpha and Charles River are positioned to shape the evolution of our industry and business model, and drive core growth across State Street.

Details 01/22/2021