State Street

Official institutions
Transforming to meet the needs of a new world

Faced with a volatile investment climate,
official institutions need to re-evaluate their investment strategies
and ensure they have the capabilities to adapt.

Some of the 102 institutions worldwide we surveyed are leading the way.
These "NIMBLE" institutions represent the top 20% of responses to questions
we asked about six different aspects of organizational agility.

100%
85%
65%

NETWORKS, COLLABORATION, AND AD HOC TEAMS FOR FLEXIBLE WORKING

INVESTMENT OPPORTUNITIES CAN BE QUICKLY INVESTIGATED AND RESPONDED TO

MIX OF INTERNAL AND EXTERNAL TALENT TO MEET BUSINESS NEEDS

BUSINESS PROCESSES CAN ADAPT IN RESPONSE TO BUSINESS NEEDS

LEARNING CULTURE THAT PROMOTES CONTINUOUS DEVELOPMENT

EFFECTIVE TECHNOLOGY PLATFORMS TO SUPPORT OPERATIONS

NIMBLE institutions
Central banks
Sovereign wealth sector

This leading group represents a cross section of institutions.

Institution
type

Central bank Sovereign wealth fund Government pension funds

Institution
assets

Less than $100 billion $100 billion–$250 billion More than $250 billion

Institution
location

APAC Latin America/
Caribbean North America EMEA

Chart shows institutions that rated their capabilities as "very effective" or "effective."

To respond to the shifting investment climate,
official institutions are upgrading their operating capabilities.

Risk management strategies evolve with the times.

To better adapt to turbulent times, official institutions are making significant
changes to their investment risk management strategies and techniques.

Risk factor analysis

Central Banks

30%Have not expanded
but will expand 35%Have expanded
but will not expand 35%Have expanded
and will expand

Government Pension Funds

18%Have not expanded
but will expand 54%Have expanded
but will not expand 28%Have expanded
and will expand

NIMBLE Institutions

26%Have not expanded
but will expand 26%Have expanded
but will not expand 47%Have expanded
and will expand

Everyone else

1%Have not expanded
but will expand 23%Have not expanded
but will expand 48%Have expanded
but will not expand 28%Have expanded
and will expand

Scenario modeling

Central Banks

40%Have not expanded
but will expand 33%Have expanded
but will not expand 27%Have expanded
and will expand

Government Pension Funds

42%Have not expanded
but will expand 44%Have expanded
but will not expand 14%Have expanded
and will expand

NIMBLE Institutions

53%Have not expanded
but will expand 21%Have expanded
but will not expand 26%Have expanded
and will expand

Everyone else

39%Have not expanded
but will expand 42%Have expanded
but will not expand 19%Have expanded
and will expand

Chart shows institutions strengthening these areas to a "moderate" or "great" extent."

Institutions are ramping up their investment in technology.

In order to keep up with rapidly changing technologies and their inherent risks,
official institutions are increasing their technology investments in key areas.