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  "documentTitle": "State Street Corporation (STT)",
  "authorId": "06_Trian_Partners",
  "authorName": "Trian Partners",
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  "presentationDate": "2011-10-16 00:00:00",
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  "pageNumber": 27,
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  "notes": "Uses a specific metric introduced by BNY Mellon in Q1 2011 to argue for operational inefficiency at State Street.",
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      "text": "Taking the inverse of this metric implies that State Street’s Investment Servicing segment’s costs exceeded its servicing fees by 40% compared to only 22% at Bank of New York Mellon’s Asset Servicing division",
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      "text": "2010 Investment Servicing Fees as a Percentage of Non Interest Expense",
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      "text": "In recognition of the need to improve both margins and pricing, Bank of New York Mellon began reporting a new metric on its Q1 2011 earnings report: “Investment Servicing Fees as a Percentage of Non-Interest Expense”\nThis metric depicts the amount by which servicing fees cover the expense base of the custodian. Taking the inverse of this metric implies that State Street’s Investment Servicing segment’s costs exceeded its servicing fees by 40% compared to only 22% at Bank of New York Mellon’s Asset Servicing division\nBank of New York Mellon’s stated goal is to drive this number higher by becoming more efficient and less reliant on capital markets income to drive performance\nWhile we understand that Investment Servicing contracts are priced holistically, we believe this metric provides additional support for the margin underperformance at State Street",
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      "text": "Investment Servicing Fees as a Percentage of Non-Interest Expense: 71%",
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      "text": "Source: SEC Filings, Investor Calls. (1) Source: SEC Filings. Investment Servicing Divisions only.",
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      "text": "Benchmarking Investment Servicing Margins → A Significant Opportunity",
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