This presentation highlights why data is driving a major transformation in the way asset owners manage their investments and the role advanced technology will play in the future. The research is based on a survey — conducted by the Economist Intelligence Unit — of more than 400 institutional investors, including 206 asset owners.

1. DATA & ANALYTICS
The Data-Driven Investor:
How Technology Changes the Game for
Today’s Asset Owners
Featuring highlights of the State Street 2013 Data and Analytics Survey
Conducted by the Economist Intelligence Unit

2. DATA & ANALYTICS
About the Research
A global survey of more than 400 asset managers and institutional asset owners on investment data
and analytics, conducted by the Economist Intelligence Unit on behalf of State Street (August and
September 2013). More than 200 asset owners participated in the survey.
Respondents by Region
Respondents by Type
20%
33%
8%
8%
34%
16%
18%
11%
33%
North America
Europe
Asia Pacific
19%
Diversified Asset Managers
Traditional Asset Managers
Alternative Asset Managers
Other
Pension Funds
Insurers
Banks
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
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3. DATA & ANALYTICS
Five Trends That Will Stretch Asset Owners’ Data Systems
Advanced Data Capabilities Will be Key to Meeting
Many of the Industry’s Most Pressing Challenges
Strategic Impact
Data Challenge
New Operating Models
Asset owners are insourcing more asset
management
Front-office tools and infrastructure required
to manage their own assets more effectively
Move to
Multi-Asset Portfolios
Search for yield is driving more asset
owners to embrace alternatives
Multi-asset class risk and performance
analytics
New Approaches
to Risk Management
New risk-oriented approaches to
investment
New risk data on broader set of assets,
combined with more sophisticated analytics
Changing Investment
Styles
Major shift by pension funds toward
liability-driven investment strategy
New tools and data required to understand
and model future cash flows versus liabilities
Regulatory Evolution
Massively increased reporting
requirements as regulators adopt a
“look-through” approach to risk
Flexible platforms that enable data to be
collected, transformed and reported on
across multiple regulatory regimes
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4. DATA & ANALYTICS
Asset Owners are Investing Heavily to Keep Pace
% Change In Investment into Data and Analytics Over Past Three Years
(Asset owner respondents only)
Significantly increased our investment (>20%)
12%
Slightly increased our investment (1-20%)
71%
Made no change
Slightly decreased our investment (1-20%)
Significantly decreased our investment (>20%)
12%
3%
1%
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
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5. DATA & ANALYTICS
Investment is Targeted at Front-Office Execution and Decision-Making Tools
How Investment Will Be Prioritized Across a Range of Data Tools
(Asset owner respondents only)
Order Management Systems /
Execution Management Systems
• Front-office tools are an
investment priority
60%
Portfolio optimization
36%
• Spend on data and analytics
will continue to grow
Performance analytics
29%
• Need to move closer to realtime information
Benchmark data
25%
Risk analytics
23%
Significant increase
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
27%
38%
44%
45%
40%
Slight increase
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6. DATA & ANALYTICS
Data and Analytics are Now a Firm Priority for Asset Owners …
Data is the Key to Addressing a Wide Range of Strategic Concerns
(Asset owner respondents only)
2%
11%
35%
• 87 percent of institutional asset owners
view data and analytics as a high
strategic priority
• For 35 percent, data and analytics as
the most important strategic priority
52%
It is the most important strategic priority
It is a high strategic priority (near the top)
It is a mid-level strategic priority
It is a low-level strategic priority (near the bottom) or not at all a strategic priority
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
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7. DATA & ANALYTICS
Yet the Industry is Polarized by Its Approach
Data is a competitive asset …
But few know how to use it
• 63 percent of asset owners believe data will
be a key source of competitive advantage
in the future
• Only 33 percent of asset owners are
reaping the full benefits from their data and
analytics capabilities today
• 83 percent increased investment in data
infrastructure in the past three years
• Our research reveals that a capability gap
is opening up between data leaders and
data laggards
An Industry
Divided by Data
1. “Data Leaders” – Companies in the survey whose data and analytics are
already a source of competitive advantage
2. “Data Laggards” – Have yet to gain full benefit from their data
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
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8. DATA & ANALYTICS
Data Leaders are Better Prepared for the Challenges Ahead
Leaders
Data leaders are more confident in ...
Laggards
% confident in capability (All respondents)
70%
• Generating forward-looking insights
from data
42%
• Integrating risk and performance analytics
72%
50%
• Optimizing their electronic trading strategies
64%
53%
By contrast, data laggards are …
• More likely to get distracted by the
complexity of data management
X
% agree with statement (All respondents)
7%
33%
• Less likely to feel their data capabilities are
keeping pace with the growth of their
business
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
92%
50%
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9. DATA & ANALYTICS
Data Leaders Have Smarter Tools for Managing Risk, Compliance
and Performance
% that view area as a strength (All respondents)
Leader
81%
Tools for regulatory compliance
Laggard
63%
Leader
60%
Multi-asset class risk tools
Laggard
38%
Leader
70%
Custom benchmarks/indices
Laggard
Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
59%
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10. DATA & ANALYTICS
Defining a New Service Model
Data You Can Trust
Adaptable Systems
Smarter Insights
Challenge
• Accuracy of information is
the top data challenge for
asset owners (cited by 36
percent)
• Systems must adapt to
support multiple
geographies, asset
classes and regulatory
regimes
• Only 13 percent of
asset owners have all
of the talent they
need to manage data
effectively
Solution
• Trusted data providers
• Systems that support
global reporting
• New outsourcing
models focused on
insight as well as
cost
• Integrate data to achieve
“one version of the truth”
• Integrated view on risk
and performance
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11. DATA & ANALYTICS
In Summary: How to Become a Data-Driven Investor
Integrate Your Data
• Enterprise data warehouses help make information accessible and
easier to analyze across the organization
Get Smarter on Risk
• New technology can help provide a holistic view of risk across multiasset portfolios
Manage Regulation
• Asset owners need flexible reporting platforms to meet evolving
regulatory demands across multiple jurisdictions
Accelerate Investment
Decisions
• In a world where investment opportunities are fleeting, real-time data
can help asset owners to act faster on their investment insights
Future-Proof Your
Systems
• Asset owners need flexible systems that can support new asset
classes, complex mandates and offshore assets
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12. DATA & ANALYTICS
This document is for marketing and/or informational purposes only, it does not take into account any investor's particular investment objectives,
strategies or tax and legal status, nor does it purport to be comprehensive or intended to replace the exercise of a clients own careful independent
review regarding any corresponding investment decision or review of our products and services prior to making any decision regarding their
utilization. This does not constitute investment, legal, or tax advice and is not a solicitation to for products or services or intended to constitute any
binding contractual arrangement or commitment by State Street and/or any subsidiary referenced herein to provide securities services. State Street
hereby disclaims all liability, whether arising in contract, tort or otherwise, for any losses, liabilities, damages, expenses or costs arising, either
direct or consequential, from or in connection with the use of this document and/or the information herein.
This document contains certain statements that may be deemed forward-looking statements, which are based on certain assumptions and
analyses made in light of experience and perception of historical trends, current conditions, expected future developments and other factors
believed appropriate in the circumstances.
© 2013 State Street Corporation
CORP-0918
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