Investment Services
State Street’s Investment Services business provides a full range of products and services across the front, middle, and back office for public and alternative assets, as well as multi-asset class investments.
We are a leading partner to global investment and wealth managers, asset owners, central banks, and other official and public institutions. By providing critical infrastructure and expertise, we help clients streamline their operating models, harness data to make better-informed investment decisions, and capitalize on growth opportunities in evolving market environments.
Our ambition is clear and unrelenting: to deliver superior, differentiated experiences for our clients through every interaction, understand our clients’ needs, reaffirm our commitment to them every day, and reinforce their trust in State Street as an essential and reliable partner.
Outstanding full-year results
The Investment Services business was integral to the firm’s overall growth and success in 2024, with assets under custody and/or administration (AUC/A) reaching $46.6 trillion at year-end, up 11 percent compared to 2023. In line with our strategy, we achieved robust fee revenue sales, largely driven by our core back-office business.
New AUC/A business wins totaled $2.3 trillion, nearly half of which was propelled by our State Street Alpha® front-to-back platform. Software and processing fee revenue increased 9 percent, supported by growth in front-office software and data services associated with our Charles River Development company.
Highlighting the success of our efforts to improve servicing capabilities and the client experience through our technology-led operating model, we achieved a substantial increase in client satisfaction across multiple facets of servicing, including service quality, technology, responsiveness, and communication.
“Our impressive new business performance in 2024 underscores the strength of our strategic investments and relentless focus on enhancing client service. This momentum reflects our commitment to driving innovation and long-term growth across every facet of our business.”
AUC/A at year-end
AUC/A total wins
Optimizing our capabilities and solutions for client success
We expanded our capabilities in high-demand segments and increased resiliency across our critical business functions — leveraging technology including artificial intelligence and automation to streamline delivery and further enhance client service.
Our comprehensive back-office solutions are a key driver of new business, accounting for nearly 85 percent of our servicing sales in 2024, and anchor our front-to-back value proposition. We invested in our back-office services during the year, specifically in support of our clients’ growing investments in private markets and exchange-traded funds (ETFs).
Our private markets business represents significant long-term growth potential for the firm and contributed approximately 9 percent of full-year servicing fees in 2024. To capitalize on this opportunity, we refined our product and platform capabilities to better support clients’ private market investments and position their portfolios for success.
Total Alpha clients
ETF servicer
We have deep insights into fast-changing industry regulations and their impact on our clients’ businesses. Ahead of the May 28, 2024 move to a T+1 settlement cycle, we successfully rolled out solutions to help clients manage associated challenges while continuing to deliver competitive services aligned to priority segments and markets.
Regulation also impacted digital asset developments in 2024. As the No. 1 servicer1 of ETFs, we deepened our position in the digital asset ETF space (e.g., Bitcoin and Ethereum ETFs), where our service offerings include custody of cash, fund accounting, transfer agency, ETF basket services, and electronic order taking.
In addition, our partnership with Taurus, a global leader in digital asset infrastructure, elevates our capabilities as we seek to provide clients with best-in-class solutions in the emerging digital asset space.
Unleashing the transformative power of Alpha
State Street Alpha is a cornerstone of our business and growth strategy, helping clients more efficiently manage their end-to-end investment process. Through real-time access to Alpha’s unified data and insights across the front, middle, and back office, and among asset classes, clients can make better-informed investment decisions. We achieved seven new mandates in 2024, bringing our total to 35 — 25 of which were live on our platform at year-end.
Software and processing fee revenue
Marking its fifth anniversary in 2024, the Alpha platform delivers comprehensive private and public market investment solutions globally, further strengthening its distinctive service offering — a key competitive differentiator for State Street.
Last year, we further invested in the platform, expanding Alpha’s public asset capabilities across cash, equities, fixed-income, and complex over-the-counter derivatives. We continue to augment the data tools and private market solutions delivered on the platform, with a focus on supporting clients’ expanding private market investment strategies and enabling adoption across our client base to fuel business growth.
Top industry awards
Recognizing our core capabilities
- Best Global Custodian in APAC
Asia Asset Management’s Best of the Best Awards 2024
- Best Custodian in APAC (28 years)
Asia Asset Management’s Best of the Best Awards 2024
- Best Middle- and Back-Office Services Provider in APAC
Asia Asset Management’s Best of the Best Awards 2024
- Asset Servicing Deal of the Year (APAC)
Global Custodian Leaders in Custody Asia Awards 2024
- Best Global Custodian (International Clients) in APAC
The Asset – AAA Sustainable Investing Awards 2024
- Best Middle-Office Tech Provider in Canada
ETF Express Canadian Awards 2024
- Best Administrator — Over $30 Billion Single Manager
HFM Asia Services Awards 2024
- Best ETF Back-Office Tech Provider
ETF Express U.S. Awards 2024
- Best ETF Middle-Office Tech Provider
ETF Express U.S. Awards 2024
- Best Overall ETF Administrator
ETF Express U.S. Awards 2024
- Best ETF Administrator — Equity ETFs
ETF Express U.S. Awards 2024
- Best ETF Administrator — Fixed Income ETFs
ETF Express U.S. Awards 2024
Looking ahead
We are committed to being an essential partner in our clients’ success, with a clear focus on accelerating fee revenue growth. Leveraging our position as an industry leader, our priorities center on enhancing service quality, continuing to elevate client satisfaction, and advancing innovation through a tech-led strategy that strengthens operational efficiency, resilience, and sustainable long-term growth.
In 2025, we will continue to augment our offerings for private market assets and ETFs, providing comprehensive solutions that meet the evolving needs of our clients and enable them to capitalize on new opportunities.
Furthering our goal of expanding into profitable new segments, we will leverage the Charles River Wealth platform — along with our asset servicing leadership and State Street Global Advisors’ presence in the wealth services market — to offer tailored solutions for wealth managers.
Additionally, we will continue to advance our initiatives around data commercialization, increasing our capacity to empower clients with sophisticated insights and innovative solutions that address their most pressing challenges. This translates into new revenue streams, improved client retention, and a stronger competitive edge for our firm — critical drivers of long-term value creation.
By embracing innovation and deepening client partnerships, we remain poised to anticipate market shifts and achieve meaningful outcomes for our clients and shareholders while shaping the future of asset servicing.