The Increasing Complexity of Investment Strategies

Prospering from Complexity
The shape of investment portfolios is changing. Yesterday's innovation is today's standard. New instruments, regulations and markets seem to be appearing daily. Increasingly, institutional investors are faced with more and more complex and challenging investment decisions.

Pressure to improve performance has escalated, while your resources have remained constant, or in some cases, actually decreased. Compounding these conditions is an increased emphasis on risk management from boards and regulatory agencies. Avoiding risk only eliminates opportunities, but understanding risk opens the door for investors to capitali
se on these very opportunities. Knowledge is the key to control. Used effectively, it can also be a stepping stone toward reaching your performance objectives.

Newly created instruments, such as derivatives, boosts returns but add a further dimension of complexity to an already complex financial world. In addition to a wide range of securities in their domestic markets, corporations, trade organisations, governments and individuals are also looking beyond their borders to meet investment goals. In this environment of change, mutual funds, investment firms and insurance companies need advanced, integrated systems that enable them to meet the increased demands of their customers.

A key element of success in this complex financial world is the availability of information that's provided clearly and quickly. Investment technology should always provide investors with answers to questions—not data. Investors need to be able to recognise opportunities quickly and exploit them.

This new level of complexity has redefined what our customers expect. Because they often operate in an environment with limited resources and increasing demands, our customers need powerful tools and the professional expertise that will help them use the tools to produce maximum value and performance.

At State Street, everything we do is built around serving institutional investors worldwide. No other financial services company approaches the level of concentration we devote to serving our customers' specialised
needs. This focus has provided us with unmatched insight into the tools that our customers need to succeed. Our broad array of services and products all are fully integrated to maximis
e their effectiveness. Because by simplifying the investment process, we enable our clients to focus on investment decisions—not administrative detail.



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