Magazine article American Banker

State Street Reinventing Itself Again - as a Money Manager

Magazine article American Banker

State Street Reinventing Itself Again - as a Money Manager

Article excerpt

State Street Boston Corp., which spent the 1970s establishing itself as a securities custodian, is reinventing itself again.

Eager to boost revenues from asset management, the $21.7 billion-asset banking company is about to unleash a worldwide advertising campaign promoting itself as a savvy, seasoned money manager.

The move comes on the heels of a reorganization earlier this month in State Street's global money management unit. At that time, executive vice president Nicholas A. Lopardo said State Street expects the money management business to grow 30% annually through the end of the decade.

To be sure, the company has no intention of turning its back on the profitable custody business that has made it a darling of bank stock analysts.

With $1.7 trillion of assets under custody, State Street derived most of its 1994 profits from securities operations and servicing.

One of the three ads that will make their debuts today trumpets State Street's leadership in the custody field and its investment in technology. But in a big

State Street is pouring the bulk of its advertising dollars into attracting institutional investors.

One competitor said State Street's new focus on money management has risks.

"If you're servicing money managers and then you go out and compete with them, it can come back and bite you," said the banker, who did not want his name used.

But others said State Street is wise to push itself beyond its familiar role as a custodian. …

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