State Street Benefits From Trend of Global Hedge Fund Managers Expanding Relationships with Independent Administrators

State Street Corporation (NYSE: STT), the world’s leading provider of financial services to institutional investors, announced today that it has been selected to provide a range of hedge fund administration services for approximately $6 billion in assets advised by Caxton Associates LP.

International Fund Services (IFS), State Street’s hedge fund administration company, will provide fund accounting, fund administration, tax and risk services to five master-feeder fund structures managed by New York-based Caxton Associates and affiliates.

“Our decision to select IFS as our independent fund administrator was based on their long and significant experience servicing highly sophisticated and complex hedge funds in the industry,” said John G. Forbes, chief operating officer of Caxton Associates LP. “We also took comfort in IFS’s premium technology, experienced staff, and meticulous control environment, which gave us added confidence that IFS could handle our complex and dynamic products.”

“This new mandate is representative of a fundamental shift underway in the hedge fund industry, as more managers seek to outsource administrative services in a highly competitive environment in which hedge funds are increasingly subject to intense investor scrutiny,” said Jack Klinck, executive vice president and global head of State Street’s Alternative Investment Solutions team. “We look forward to forging a long-standing relationship with Caxton Associates and to helping them create additional efficiencies in their operations.”

The arrangement between Caxton Associates and State Street highlights the importance of appointing third-party administrators to help alleviate the growing administration requirements from institutional hedge fund investors. For example, State Street’s 2008 hedge fund research study conducted during the 2008 Global Absolute Return Congress (Global ARC) revealed that institutional investors continue to seek transparency for their hedge fund holdings. Five out of six institutions (84 percent) expect more disclosure of hedge fund positions and nearly half (49 percent) anticipate more frequent reporting from hedge fund managers.