State Street Corporation · NYSE:STT
State Street — Investor Presentation (December 2018)
16 slides from State Street's investor presentation, December 2018
Slide 1: The Impact of Brexit on the UK Fund Management Industry
The Impact of Brexit on the UK Fund Management Industry State Street Institutional Survey December 2018 Limited Access
Slide 2: Methodology
Methodology • State Street commissioned PollRight* to conduct a survey of professional investors on the potential impact of Brexit on UK fund managers. • Respondents comprised institutional and alternative investors such as hedge funds, real estate and private equity**. In total, 100 individuals par
Slide 3: Summary of Findings
Summary of Findings • While overall sentiment paints a negative outlook for UK fund management after Brexit, there is a strong representation of respondents who remain positive in their outlook for European presence within the UK and London specifically. • Nearly a quarter (24%) of investors believe
Slide 4: Summary of Findings (Continued)
Summary of Findings Continued • One in six (17%) investors expect UK investment managers to oversee an increase on the £9.1trn of assets recorded at the end of 2017 within a year of Brexit taking place. Interestingly, those based in continental Europe (19%) are more confident of this happening than
Slide 5: Will more European fund managers open UK offices after Brexit?
As a result of Brexit, do you think more non-UK European-based fund managers (with no current physical presence in the UK) will look to open offices in London / UK? 10% 24% 24% think more European- based fund managers will look to open offices in the UK after Brexit Yes 66% No Don't know State Stree
Slide 6: Will more American or Asian fund managers open UK offices?
As a result of Brexit, do you think that more American or Asian-based fund managers with no current physical presence in the UK will look to open offices in London / UK? 12% 22% 22% think more American or Asian fund managers will look to open offices in the UK after Brexit Yes 67% No Don't know Stat
Slide 7: Will existing European managers add UK staff post-Brexit?
As a result of Brexit, do you think many non-UK European-based fund managers who already have offices in London / UK, will add to the number of people they employ here? 8% 15% 15% Believe existing European fund managers will add to their UK office post- Brexit Yes 77% No Don't know State Street Brex
Slide 8: Why European fund managers will expand UK operations
If you think European fund managers will expand their operations in the UK post-Brexit, why is this? The UK is home to a huge amount of investment management expertise and 59% knowledge which European fund managers will want to access London/UK is still a very desirable place for senior executives i
Slide 9: Why American or Asian managers will open UK offices
Why do you think that more American or Asian based fund managers with no current physical presence in the UK will look to open offices in London / UK? (Only those who selected “yes” in Q6) The UK is home to a huge amount of investment management expertise and 54% knowledge which European fund manage
Slide 10: Will UK authorities make opening offices more appealing?
As a result of Brexit, do you think that the UK authorities will make it more appealing for fund managers to open an office in London / the UK? 22% 55% Believe UK authorities will make 55% it more appealing to open London offices post-Brexit 23% Yes No Don't know State Street Brexometer Survey 10 In
Slide 11: Expected increase in M&A activity by European fund managers
As a result of Brexit, do you think there will be an increase in merger and acquisition activity by European fund managers considering buying UK firms to have a presence in London / the UK? 6% 100% 15% 90% 80% 28% 70% 60% 51% 50% 40% 34% 38% 30% 20% 13% 10% 0% Yes, a significant increase Yes No Yes,
Slide 12: UK assets under management one year after Brexit
Investment managers in the UK oversaw a record £9.1tn of assets at the end of 2017 − up 12% on the previous year. Assuming there is no market correction, how do you think this will have changed one year after Brexit? 6% 3% 100% 13% 90% 80% 31% 70% 61% 60% 17% 50% 40% 30% 20% 16% 30% 10% 0% It will b
Slide 13: UK share of European assets under management over three years
The UK has by far the largest value of assets under management in Europe, accounting for around 36% of the region’s total. How do you see this changing over the next three years? 1% 2% 100% 11% 90% 80% 74% 29% 70% 12% 60% 50% 40% 30% 45% 20% 13% 10% 0% Increase dramatically All increase All decrease
Slide 14: Most popular UK fund structures for foreign managers
Which of the following UK fund structures do you think will prove most popular for European and other foreign fund managers looking to launch UK products and / or expand their operations in the UK? 50% 44% 45% 43% 40% 35% 30% 25% 21% 20% 20% 15% 10% 5% 0% OEICs Unit trusts ETFs Investment Trusts Sta
Slide 15: Considering launching a UK fund range to protect UK investors
Are you considering launching a UK fund range to protect existing UK investors in your Non UK-based European fund ranges? 3% 100% 91% 6% 90% 80% 27% 70% 60% 50% 40% 64% 30% 20% 9% 10% 0% No - we don’t have any UK investors All "yes" All "no" No - we already have a UK Fund range Yes - we are already
Slide 16: Disclaimer
Marketing Communication Disclaimer Important Information: For Institutional clients only. Not for public use. Investing involves risk including the risk of loss of principal. The information provided does not constitute investment advice and it should not be relied on as such. It does not take into