It is not excluded either as a synthetic ETF

The trend in management is the outsourcing of certain activities. The American State Street, financial services provider and management company, was in a specialty. Joseph Antonellis, visiting Paris, tells us about the ambitions of his house in the area.

That has changed the financial crisis in the asset management industry

It was all upon us. The bull market and the net disinvestment of the period have caused a reduction in assets under management. Commissions and revenue fell. It forced us to refocus us on our own structure, to develop new products to attract capital flows, to increase our distribution. Today, I can tell you that the collection is returned, only to rate products and cash. How to recover lost revenues exist, but only in the case of these products where margins are lower.

What types of products had to be created following the crisis

A crisis is a source of opportunities. It will not of the previous differ. Let me mention two products that are part of the offer of State Street Global Services. The first example is a direct response to the need to better manage the risk of return, which became evident after the bankruptcy of Lehman. Each asset manager has had an immediate need to minimize its exposure resulting from the various positions it had taken (OTC, loan-loan) of securities related to its mandates and funds. The response that we have made is the possibility of offering a daily management of the collateral, which results in exposure to the risk of residual consideration at the end of the day. The second example is the consequence of the evolution of OTC products Editor's Note: OTC. Based on a client request, State Street has started with a product that can operate on all types of OTC. Two years ago, we had launched a platform, with Pimco for first client. It provides a service without break in the chain of derivatives. Thus, our clients have greater transparency on the upgrading of their products.

The outsourcing of activities of management companies is a beacon for you...

I would better say: this is our first activity. State Street has heavily invested in this offer for nearly ten years and we are proud that more than a management company on two having the choice of outsourcing trusted us. In addition, demand is soaring and likely to remain when it is known that barely 15 of companies made this choice to date. Of course, all management companies sous-traiteront not all of their business. First of all, the management itself is inherently their rationale. It remains a fundamental product for Corporation with the distribution. However, for all the peripheral services, the question on the need to outsource all or part of these services is more present. To date, we have made beautiful operations as with Pimco, AXA IM and, more recently, Morgan Stanley, Babson or Pinebridge. But, the management company, is an important decision which takes time.

What are your geographical ambitions

Our strategic expansion is played on two planes. On the one hand, we are developing our services for the administration of funds capabilities. On the other, we continue our geographical development. Last twelve months have been for us an opportunity to carry out well two major acquisitions for State Street. In December 2009, we acquired dying International Finance Administration, which allowed us to become a major global player in the "private equity" for institutional investors. Dying International Finance Administration is based in Jersey. It has 170 billion of assets under administration and has offices, including Singapore and Hong Kong. In our geographical expansion, we we moving more and more to Europe, where we are already implanted in eleven countries. A presence on the spot and the ambition to become a leading service provider in all key European markets represent a strategic priority for us. The acquisition of Intesa San Paolo Global Custody is genuine proof of our strategy, which allows us to become the largest provider of administration in Italy, but also to develop to the Luxembourg.

And emerging markets

For us, they are as important as Europe. We are also investing in Asia but it is important to understand that it is a market still very fragmented. For US, China is attractive in the same way as the India. We are convinced that the consolidation of the asset management sector will lead to increase expenditure Teknologi-s everywhere in the world and create real opportunities for a company such as ours. One of our main goals in five years is to double our revenues from outside the US zone.

IShares launched the ETF ("exchange traded funds" or rated index funds) synthetic in Europe for the Control Source. You are one of the leaders of this market, are you going to do the same

We have some changes in project. It is not excluded either as a synthetic ETF. SSgA represents the second ETF provider at the global level, and it is necessary for us to improve our status, i.e. through our product key, American. Rated index funds are the heart of the allocation of assets, which can add alpha real estate and alternative management.

Full interview on lesechos.fr/interview