State Street pays €57m for BIAM

INTERNATIONAL financial services company State Street has made its first foray into the asset management sector here, via the €57 million purchase of Bank of Ireland Asset Management (BIAM).

Although chiefly known for its international asset management business, the Boston-headquartered State Street already has a sizeable presence here. It’s been in Ireland since 1996 and is now seen as one of the largest fund administrators in the state, with facilities in Dublin, Kilkenny, Naas and Drogheda. It opened its new Irish headquarters, housing its global services and alternative investment solutions divisions, last March.

“This acquisition enables us to expand our range of investment capabilities to include active fundamental management,” commented State Street’s president and chief executive Scott Powers yesterday.

“As our clients look for more solution-driven investment management strategies that span the risk spectrum, the addition of this team and capabilities will enhance our ability to deliver on these needs,” he added.

The deal is likely to be concluded during the first quarter of next year at the latest, once regulatory approval is granted and BIAM’s full 120-plus staff is likely to transfer to State Street’s Dublin office.

Chris Johns, currently BIAM’s chief investment officer and interim chief executive, will take over as State Street Ireland’s chief investment officer. The US company added that the acquisition – which has been speculated upon for the last few months – should be “slightly accretive” to its 2011 earnings.

BIAM, the sale of which is a by-product of its recent EU-agreed restructuring plan, currently has assets valued at approximately €26bn under management, with more than 500 clients.

“Like State Street, BIAM’s investment philosophy is rooted in a disciplined, team -based approach and has a strong track record of excellent performance. We look forward to building on this track record and extending its capabilities to our global client base,” Mr Powers added.

In a statement on the sale of its asset management arm, Bank of Ireland said yesterday: “BIAM will continue to be an important provider of investment products to the Bank of Ireland Group and an important customer of Bank of Ireland Securities Services.”