Opportunities Across Borders
Institutional investors find themselves operating in an increasingly competitive global marketplace. The trend toward a more open business and investment environment throughout the world is picking up speed. New markets are proliferating. Exchanges are multiplying. And competition is as likely to come from across the ocean as across the street.
Corporations, trade organisations, governments and individuals are looking beyond their borders to meet anticipated demands. Driven by a need for improved performance as well as the reduction in risk brought by diversification, investors have searched the world seeking investment opportunities. Cross-border investing allows investors to achieve higher returns and diversify risk management by reducing reliance on a single nation's growth and stability.
From just 1989 to 1994, InterSec Research in London found non-domestic investment by pension funds rose from 7 to 11 percent. By the end of the century the projected rise is to 15 percent-more than doubling in just 11 years.
Not long ago, the ability to invest across borders was an extra, but it has become a competitive necessity for all types of managers, be they from mutual fund, investment or insurance companies. Beyond simply investing, most firms consider a presence in non-domestic markets to be a key component of growth. However, as with most formidable prizes, significant barriers exist.
The impact of globalisation can be seen in more than just an increase in cross-border investing or multinational pension plans. Reduced staffing, a faster pace, consolidation and an environment that is far more information-intensive than it was a generation ago all can be linked with an ever-shrinking globe.
In order to react and prosper from the new opportunities, institutional investors must overcome the obstacles that stand in their way. They need to understand and
customise their approach to take into consideration country-by-country differences regarding distribution, investment practices and marketing.
As the industry leader, State Street provides the services and products, and equally important, the know how to help our customers invest anywhere in the world. State Street's unique business focus means we are positioned at the crossroads of global investment flows. Our worldwide presence provides us with rare insights into local markets and an overview of the entire global investment picture. This is the vision we extend to our customers. This is the vision that enables us to maximise our client's investment opportunities across the globe.
