Group 1 - State Street is one of the largest global asset servicing and asset management firms, managing approximately $52 trillion in assets under custody and administration and $5.5 trillion in assets under management [1] - In 2025, State Street experienced growth in servicing fees, driven by positive sales momentum and stable net interest income (NII) [1] - The company is focused on delivering positive operating leverage and maintaining a robust pace of share repurchases, indicating a strong financial strategy [1]

Summary of State Street's Conference Call Company Overview - **Company**: State Street - **Industry**: Asset servicing and asset management - **Assets**: Approximately $52 trillion in assets under custody and administration, and $5.5 trillion in assets under management [1][1] Key Points and Arguments 2026 Strategic Priorities - **Financial Delivery**: Emphasis on meeting financial commitments and expectations [3][3] - **Balance Sheet Optimization**: Focus on improving efficiency and growing Net Interest Income (NII) over time [4][4] - **Expense Management**: Continued efforts to manage expenses and enhance productivity [5][5] - **Partnerships**: Collaborating with business leaders to drive strategic initiatives [5][5] Fee Revenue and Sales Momentum - **Investment Servicing Growth**: Anticipated fee growth of $350-$400 million, with a strong sales momentum [7][7] - **Backlog Quality**: Improvement in the backlog, particularly in back office and private markets, which are expected to drive future growth [11][11] Private Markets - **Growth Area**: Significant focus on private markets, with expectations of double-digit growth in fees for 2026 [13][13][14][14] - **Competitive Advantage**: State Street's global platform and capabilities provide a competitive edge in the fragmented private market space [13][13] Wealth Servicing - **Strategic Partnerships**: Recent partnerships with UC Investments and Apex Fintech Solutions to enhance wealth servicing capabilities [15][15][18][18] - **Market Opportunity**: Positioned to capture growth from the demographic shift and wealth transfer from Baby Boomers [16][16] Digital Assets - **Digital Asset Platform**: Launching a digital asset platform imminently, with plans to introduce tokenized products, starting with a tokenized money market fund [20][20][21][21] - **Future Opportunities**: Exploring the potential for custody of stablecoins and tokenization of traditional assets [22][22][24][24] Investment Management - **Growth Contributors**: Focus on ETFs, geographic expansion, and partnerships with alternative asset managers [28][28][30][30] - **Private Market Initiatives**: Launching new products in collaboration with Apollo and Bridgewater, and focusing on the secondary market with Coller [32][32][34][34] Financial Performance and Outlook - **Q4 Expectations**: Anticipated fee revenue to be at the upper end of the 8.5%-9% range, with NII expected to be flat to slightly up [36][36][38][38] - **Expense Management**: Projected expenses to approach 5%, with notable items around $275 million for the quarter [39][39][41][41] - **Capital Returns**: Expecting around 80% capital return in 2025, with a focus on dividends, organic growth, and strategic investments [57][57][59][59] Balance Sheet and NII Strategy - **Balance Sheet Optimization**: Focus on deploying capital into strong customer relationships and improving risk-adjusted returns [46][46][48][48] - **Funding Mix**: Evaluating the mix of deposits and wholesale funding to enhance NII [51][51][53][53] Conclusion - **Long-term Growth Outlook**: State Street is well-positioned for growth in various segments, including private markets, wealth servicing, and digital assets, with a strong focus on operational efficiency and strategic partnerships [63][63]

Company Overview - State Street Corporation, based in Boston, Massachusetts, provides a range of financial products and services to various types of investors worldwide, with a market cap of $34.7 billion [1] - It is categorized as a large-cap stock, reflecting its substantial size and influence in the asset management industry, operating as one of the largest custodian banks globally [2] Stock Performance - State Street's stock reached an all-time high of $127.07 recently, with a 12.6% increase over the past three months, outperforming the Dow Jones Industrial Average's 4% gains during the same period [3] - Year-to-date, STT stock prices have increased by 28.5%, and 26.9% over the past 52 weeks, compared to the Dow's 11.8% gains in 2025 and 7.1% returns over the past year [4] Financial Results - In Q3, State Street reported an 8.8% year-over-year increase in revenue to $3.5 billion, exceeding expectations by 2.2%, driven by broad-based fee revenue increases [5] - The company's earnings per share (EPS) surged by 23% to $2.78, surpassing consensus estimates by 6.1% [5] Market Comparison - STT stock has outperformed its peer, Ameriprise Financial, Inc., which saw a 10.2% decline in 2025 and a 13.7% drop over the past 52 weeks [6] - Among 19 analysts covering STT stock, the consensus rating is a "Moderate Buy," with a mean price target of $130.94, indicating a modest 3.8% upside potential from current price levels [6]

Core Viewpoint - State Street Corp. has experienced a significant decline in its fundamental "Quality" ranking, now placing it in the bottom decile among its peers, which raises concerns about its operational efficiency and financial health [1][2][3]. Group 1: Quality Score and Rankings - State Street's quality score decreased from 10.26 to 9.73 week-on-week, indicating a drop into the bottom 10% of its peers [2]. - The quality score is a percentile-based metric, suggesting that State Street ranks lower than approximately 90% of its competitors in terms of operational efficiency and financial health [3]. - The decline into single digits indicates that despite a potentially strong stock price performance, the company's fundamental efficiency is lagging behind the market [3]. Group 2: Stock Performance - State Street's stock has risen by 26.67% year-to-date, outperforming the S&P 500 index, which gained 16.66% in the same period [7]. - The stock closed at $124.07, reflecting a 0.37% increase on Monday, and has gained 24.78% over the year and 25.50% in the last six months [7]. - The company holds a momentum score of 78.34, indicating strong relative strength based on price movement and volatility, despite the low quality ranking [4]. Group 3: Regulatory Environment - The decline in State Street's fundamental scoring coincides with potential regulatory changes being considered by the Trump administration, which may limit the voting power of major index fund managers [5][6]. - Proposed executive orders could require index funds to align their votes with client preferences rather than centralized decisions, reflecting increased scrutiny on firms like State Street [6].

2025 年 12 月 08 日 亚太新兴市场产品中中国产品表现 出色 ——海外创新产品周报 20251208 相关研究 证券分析师 沈思逸 A0230521070001 shensy@swsresearch.com 邓虎 A0230520070003 denghu@swsresearch.com 联系人 沈思逸 A0230521070001 shensy@swsresearch.com 权 益 量 化 研 究 证 券 研 究 报 告 请务必仔细阅读正文之后的各项信息披露与声明 本研究报告仅通过邮件提供给 博时基金 博时基金管理有限公司(researchreport@bosera.com) 使用。1 ETP 研 究 - ⚫ 美国 ETF 创新产品： Horizon 发行多只主动 ETF。上周美国共 23 只新发产品，数字货 币、单股票产品继续发行。Horizon 上周发行 3 只产品，分别投向国际股票和美国中小 盘股票，另有一只控制风险的国际股票产品，这些产品都使用基于价值、动量、质量的量 化方法，控制风险的产品会根据风控模型适当转向货币降低风险；3 只产品都会通过期权 价差策略来增厚收益。 ⚫ 美国 ETF ...

State Street is deepening its expansion in Saudi Arabia as it looks to cash in on booming demand for exchange-traded funds https://t.co/mtsBFxl7zb ...

Core Viewpoint - State Street Inc. has shown strong stock performance with a 1.38% increase in the current session, a 3.22% rise over the past month, and a 22.37% increase over the past year, leading to optimism among long-term shareholders, while concerns about potential overvaluation arise from the price-to-earnings (P/E) ratio analysis [1]. Group 1: Stock Performance - The current trading price of State Street Inc. is $120.66, reflecting a 1.38% spike [1]. - Over the past month, the stock has increased by 3.22% [1]. - In the past year, the stock has appreciated by 22.37% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating the company's current performance against historical earnings and industry benchmarks [5]. - State Street Inc. has a P/E ratio of 12.63, which is significantly lower than the Capital Markets industry average of 57.08 [6]. - A lower P/E ratio may suggest that the stock is undervalued or that shareholders expect poorer performance compared to industry peers [6]. Group 3: Investment Considerations - While the P/E ratio is a useful tool for assessing market performance, it should be interpreted cautiously as a low P/E can indicate undervaluation or weak growth prospects [9][10]. - Investors are encouraged to consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of the company's financial health [10].

Group 1 - The global ETF industry is valued at $19 trillion, with a significant influx of capital into ETFs, totaling $42 billion in the last week alone, which is double the pace of the year [2][3] - Vanguard is leading the way in ETF inflows, with $120 billion this year, contributing to a record $350 billion for the company [4] - Money market funds are gaining traction, with $4.5 trillion in assets, and they represent almost half of the entire ETF industry [6][7] Group 2 - Capital Group has crossed $100 billion in assets under management in the active ETF space, driven by investor demand for high-quality active management [8][10] - There is a growing preference for active management in ETFs, particularly in the U.S. equity market, where active funds are showing value [10][12] - Capital Group manages over $3.2 trillion in assets, with a significant portion in retirement portfolios, indicating a strong focus on long-term investment strategies [16][17] Group 3 - State Street Investment Management is exploring the impact of dual share classes in the ETF industry, aiming to launch mutual fund share classes of existing ETFs [29][31] - The company is also focused on retail demand for private assets, emphasizing the importance of liquidity and income in the private credit market [27][28] - There are concerns about the industry's preparedness for an influx of new ETFs and the associated market-making challenges [22][23]

Core Insights - State Street Corporation will present at the Goldman Sachs 2025 Financial Services Conference on December 10, 2025, at approximately 9:20 am ET [1] - An audio webcast of the event will be available on State Street's Investor Relations website, with a recorded replay accessible for approximately ninety days [2] - As of September 30, 2025, State Street has $51.7 trillion in assets under custody and/or administration and $5.4 trillion in assets under management [3][4] Company Developments - State Street Investment Management announced share splits for five Select Sector SPDR ETFs, which will decrease share prices and increase the number of outstanding shares, effective for shareholders of record as of December 2, 2025 [6] - The company launched the State Street® SPDR® S&P® Leveraged Loan ETF (LVLN), which has a gross expense ratio of 0.40%, making it the lowest-cost leveraged loan ETF available in the U.S. [7] - State Street Investment Management plans to close and liquidate several ETFs based on an ongoing review of its offerings [8]

Core Insights - Investing in the US dollar-denominated high-yield bond sector can be easily achieved through the State Street SPDR Portfolio High Yield Bond ETF (SPHY) [1] Group 1 - The SPDR Portfolio High Yield Bond ETF (SPHY) is highlighted as a straightforward investment option for gaining exposure to high-yield bonds [1]