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10. I N V E S T O R S F I N A N C I A L S E R V I C E S
 Investors Financial Service trader Robert T. Jackson talks on the phone, while early numbers post in the background. (Globe Staff Photo / George Rizer) |
Business booms, but Wall St. tells another story
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ast year was either very good or very bad for Investors Financial Services Corp. (IFIN) -- depending upon which numbers you believe.
Wall Street was clearly down on the parent company of Investors Bank & Trust, as it was on other custodial banking companies, including Boston-based State Street Corp. With its clients in the mutual fund and investment world struggling, Investors Financial Services saw its stock price fall more than 17 percent during a turbulent 2002. By other financial measures, the company had a second consecutive banner year. Fueled by $50 billion in new assets under management, Investors Financial Services jacked revenue 21 percent higher and boosted net income by 37 percent. The company won contracts to manage assets for mutual fund companies such as CDC Nvest, Oakmark, and IDEX, as well as insurance giant American International Group.
"We added some significant new business," said chief financial officer John Spinney Jr. "I think a big piece of this is outsourcing -- managers continuing to outsource more of their operations. The big dogs of the industry are competing to handle it for them, and we're right there in the mix."
Investors Financial Services competes against the likes of State Street and Bank of New York to do the behind-the-scenes number crunching and administrative work for mutual funds, annuities, partnerships, and other organizations that manage large amounts of money.
If the financial markets continue their recent rebound during the months ahead, Spinney said, all the custodial banks will get a "downstream benefit" as investors put more of their money back into the system.
SCOTT BERNARD NELSON
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