Investment manager's Chinese expansion

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Investment manager State Street Corporation has expanded in China, opening a new office in Shanghai to service burgeoning hedge fund clients.

The office will also support client and business development initiatives in China for State Street’s alternative investment solutions (AIS) business in private equity and real estate asset classes.

The Shanghai team will report to Eric Chow, head of relationship management for State Street’s AIS business in Asia Pacific.

The company, which has more than 3,500 employees, aims to expand its presence in the Asia Pacific region. State Street opened its technology centre in Hangzhou in 2008, its Beijing branch in 2011 and announced a joint venture with Zhongrong International Trust last year.
“We believe our approach to providing integrated investment servicing solutions is well-suited to China’s growing market, where domestic institutional investors have become more sophisticated and are gaining more exposure abroad,” State Street’s AIS senior managing director Carol Hall said.

"These investors are looking for foreign partners with global capabilities combined with local knowledge and expertise."

The company has also just announced fourth quarter and full-year earnings results for the period ended 31 December, 2013.

Revenue came to US$2.46 billion, up from $2.43 billion in the third quarter of 2013 and from $2.45 billion in the fourth quarter of 2012.

Net income available to common shareholders was US$545 million, up from $531 million in the third quarter of 2013 and from $468 million in the fourth quarter of 2012.

And the return on average common shareholders' equity (ROE) of 10.9% increased from 10.8% in the third quarter of 2013 and from 9.3% in the fourth quarter of 2012.
State Street has $27.4 trillion in assets under custody and administration and $2.3 trillion in assets under management at December 31, 2013.