Large global investors today carry a heavier responsibility than ever before. A discipline once devoted to building the wealth of a small group of people now acts to ensure the future well-being of millions. Pension plans, insurance and investment companies and collective investment vehicles make up an ever-growing share of the world's investment markets. Thousands of investors worldwide are vigorously seizing this historic opportunity, seeking to guide the global resources that will fund retirement, education and healthcare, and shape the quality of so many peoples' lives.

These investors are our clients. Virtually everything we do at State Street is built around meeting their sophisticated needs worldwide. No other financial services company approaches our focus on serving their specialised needs — whether in terms of financial resources, technology and product development, management attention or employee time. No other company of our size is so devoted to serving this clientele and no other company derives such an overwhelming percentage of its revenues and earnings from this global community of investors.

Because the concerns of these clients are our own concerns, we find special significance in four powerful trends sweeping the world today:

The aging of the world’s populations

The shift from government to private pension plans

The growth in cross-border investing

The increasing complexity of investment strategies

To us at State Street, these trends are not abstractions: they lie at the very core of our business. Because these trends are shaping the world of institutional investors — both strategic direction and day-to-day operations — they are also the forces driving what we do. Not only are we working today to respond to these powerful trends, we are constantly seeking new ways to anticipate their consequences so that we may serve our clients effectively whatever the challenges.

Our firm's broad view of the institutional investment landscape stems from our unique perspective. State Street clients range from CalPERS to the Hong Kong Monetary Authority; from General Electric to Societe Generale; and from Merrill Lynch to Queensland Investment Corp. For investment managers, treasurers, executives of plan-sponsoring institutions, fund administrators and systems directors, securities traders, human resources and benefits professionals, we provide the daily support and information they need to meet their responsibilities to clients, beneficiaries and shareholders.

In the complex, rapidly-changing financial world we are responsible for the care of trillions of dollars for millions of investors worldwide. Amidst all the complexity and with the enormity of our task, the needs we satisfy come down to controlling risk and improving performance. We work with corporate, government and non-profit pension plan sponsors to manage risk as they seek to meet future liabilities. We assist administrators and investment managers from mutual funds and insurance companies with an array of services they need to insure the best possible performance. The services we provide allow investors to run an efficient operation that permits them to focus on the demanding decisions required by their business. As a unified institution we support every step of the investment process.

The list of services has evolved, and will continue to evolve, based on the changing needs of our clients. The scope of our resources and our ability to grow with our clients is a primary reason for the longevity of our typical client relationships. We feel that clients, and prospective clients, should enjoy the confidence of knowing that their relationship with State Street will be built for the long term. For this reason, we are constantly striving to stay ahead of market forces and trends.

To some of our clients, these trends represent opportunities, challenges to others. To us at State Street, one thing is certain: We will be ready for them.

David A. Spina
President, Chairman and CEO
State Street Corporation