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Multi-Asset, Multi-strategy Is the Future at State Street Global Advisors

- End-to-end alternative investment platform slated for 2007- Enhanced institutional client information delivery technology under development- New distribution channel capability in focus

State Street Global Advisors
Keith Dennelly
Chief Technology Officer

Keith Dennelly State Street Global Advisors

State Street Global Advisors
1 Lincoln St.
Boston, MA 02111

CIO, Bankers Trust/Deutsche Bank Global Asset Management Services suite of businesses; VP in Retirement Services Systems division, Prudential Investments; VP of Investment Management Systems, Bank of New York/JPMorgan Trust Co.

B.A. in economics, State University of New York at Stony Brook; M.B.A., State University of New York at Albany.

The real benefit I got from each of my managers was a business orientation toward IT. Technology alone isn't really the value equation -- it's technology as the enabler. These mentors were all well-versed in terms of building strong relationships with the different business functions rather than on pure technology.

My biggest influence has been my staff. It's important to really listen to your staff because they are the eyes and ears into the business and into the technology functions you support. They benefit in terms of growth and development, and you benefit because you're much more closely tied into the day-to-day happenings in the organization.

I was at Prudential in the mid-90s when the Internet was coming into its own, and we built out Web capabilities for the 401(k) business. It was fun being on the vanguard. Also, I led the integration effort when Bank of New York merged with the trust business of JPMorgan. That was a unique opportunity to provide leadership in terms of M&As from both a technology and organizational perspective.

What's Next?
The future lies in solutions that are multi-asset-class, multistrategy, and multi-investment capable. Separate solutions by asset class and function drive costs higher than they need to be from a support perspective.


IT Budget


Key Technology Management


Size of Technology Team:

Approximately 250 full-time staffers, augmented with consulting resources from both offshore and onshore.

Percent of IT Projects Outsourced:

Roughly 15 percent to 20 percent of our projects involve outsourced resources.

Key Technology Partners:

We have close partnerships with all our tech vendors.

Success Metrics:

The measure of success with IT projects is whether they enable the business to meet its goals. Every one of our projects is tied to SSgA's strategy and its ability to meet the particular objective -- whether it be cost- or customer-based. We measure the success by whether that project helps the business achieve its goals within the context of the agreed-upon time frame and budget. We have a governance process to manage that.


2007 initiatives will continue.


Client Information Delivery

We're looking at providing a broad set of information to clients in an integrated fashion, including enhancing the types of information, the availability and the timeliness that the information is offered to institutional clients. The real value is in the underlying quality of the data and information. We've partnered with State Street's Investment Management Services organization to implement the same solution they use to service their external clients, we're upgrading our accounting capability, and we're partnering with IMS to deliver a new performance management and reporting system that will be available to clients. We're also enhancing client and portfolio reference data so we can be flexible in allowing clients to see things the way they want to.

Alternative Investment Systems

We have a project in place to provide capabilities for dealing with alternative investments, such as OTC derivatives and swap instruments, from an end-to-end perspective, from the investment decision-making process all the way through order generation, trade capture and confirmation. We're looking at all the functions in the investment process and creating integrated solutions for servicing them using a combination of packaged applications and homegrown integration.

Support for New Distribution Channels

We are creating a suite of systems to support new distribution channels, which encompass some enhancements on the Web for additional information delivery mechanisms, ... and integrating packages in a unique way so we can sell and support the same investments in new markets.

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