Home
Jump to Risk Factors
Jump to Industries
Jump to Exposures
Jump to Event Codes
Jump to Wiki Summary

Industries
Investment Banking and Brokerage
Technology Hardware Storage and Peripherals
Information Technology
Technology Hardware and Equipment
Asset Management and Custody Banks
Exposures
Express intent
Military
Leadership
Political reform
Provide
Rights
Judicial
Event Codes
Warn
Military blockade
Human death
Agree
Empathize
Promise
Solicit support
Yield to order
Endorse
Host meeting
Seize
Force
Sports contest
Wiki Wiki Summary
Quantum fluctuation In quantum physics, a quantum fluctuation (also known as a vacuum state fluctuation or vacuum fluctuation) is the temporary random change in the amount of energy in a point in space, as prescribed by Werner Heisenberg's uncertainty principle. They are minute random fluctuations in the values of the fields which represent elementary particles, such as electric and magnetic fields which represent the electromagnetic force carried by photons, W and Z fields which carry the weak force, and gluon fields which carry the strong force.
Fluctuating asymmetry Fluctuating asymmetry (FA), is a form of biological asymmetry, along with anti-symmetry and direction asymmetry. Fluctuating asymmetry refers to small, random deviations away from perfect bilateral symmetry.
Thermal fluctuations In statistical mechanics, thermal fluctuations are random deviations of a system from its average state, that occur in a system at equilibrium. All thermal fluctuations become larger and more frequent as the temperature increases, and likewise they decrease as temperature approaches absolute zero.
Primordial fluctuations Primordial fluctuations are density variations in the early universe which are considered the seeds of all structure in the universe. Currently, the most widely accepted explanation for their origin is in the context of cosmic inflation.
Day length fluctuations The length of the day (LOD), which has increased over the long term of Earth's history due to tidal effects, is also subject to fluctuations on a shorter scale of time. Exact measurements of time by atomic clocks and satellite laser ranging have revealed that the LOD is subject to a number of different changes.
Electromagnetic field An electromagnetic field (also EM field or EMF) is a classical (i.e. non-quantum) field produced by accelerating electric charges.
Interest In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party.
Compound interest Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest. It is the result of reinvesting interest, or adding it to the loaned capital rather than paying it out, or requiring payment from borrower, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Real interest rate The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.
Interest rate cap and floor An interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%.
Securities market Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets, bond markets and derivatives markets where prices can be determined and participants both professional and non professional can meet.
National Securities Depository Limited National Securities Depository Limited (NSDL) is an Indian central securities depository, based in Mumbai. It was established in August 1996 as the first electronic securities depository in India with national coverage.
Statistical significance In statistical hypothesis testing, a result has statistical significance when it is very unlikely to have occurred given the null hypothesis. More precisely, a study's defined significance level, denoted by \n \n \n \n α\n \n \n {\displaystyle \alpha }\n , is the probability of the study rejecting the null hypothesis, given that the null hypothesis is true; and the p-value of a result, \n \n \n \n p\n \n \n {\displaystyle p}\n , is the probability of obtaining a result at least as extreme, given that the null hypothesis is true.
List of public corporations by market capitalization The following is a list of publicly traded companies having the greatest market capitalization. In media they are described as being the most valuable companies, a reference to their market value.Market capitalization is calculated from the share price (as recorded on selected day) multiplied by the number of outstanding shares.
Mark-to-market accounting Mark-to-market (MTM or M2M) or fair value accounting refers to accounting for the "fair value" of an asset or liability based on the current market price, or the price for similar assets and liabilities, or based on another objectively assessed "fair" value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early 1990s, and is now regarded as the "gold standard" in some circles.
If You Don't, I Will If You Don't, I Will (French: Arrête ou je continue) is a 2014 French comedy film directed by Sophie Fillières. The film had its premiere in the Panorama section of the 64th Berlin International Film Festival.
We Continue the Change We Continue the Change (Bulgarian: Продължаваме промяната, romanized: Prodalzhavame promyanata; PP) is an electoral alliance in Bulgaria led by Kiril Petkov and Asen Vasilev, the former caretaker Economy and Finance Ministers, respectively. It competed in the November 2021 Bulgarian National Assembly election, coming in first place with 67 seats.
Sibling relationship Siblings play a unique role in one another's lives that simulates the companionship of parents as well as the influence and assistance of friends. Because siblings often grow up in the same household, they have a large amount of exposure to one another, like other members of the immediate family.
Interpersonal relationship The concept of interpersonal relationship involves social associations, connections, or affiliations between two or more people. Interpersonal relationships vary in their degree of intimacy or self-disclosure, but also in their duration, in their reciprocity and in their power distribution, to name only a few dimensions.
Entity–relationship model An entity–relationship model (or ER model) describes interrelated things of interest in a specific domain of knowledge. A basic ER model is composed of entity types (which classify the things of interest) and specifies relationships that can exist between entities (instances of those entity types).
Joking relationship In anthropology, a joking relationship is a relationship between two people that involves a ritualised banter of teasing or mocking.\n\n\n== Structure ==\nAnalysed by British social anthropologist Alfred Radcliffe-Brown in 1940, it describes a kind of ritualised banter that takes place, for example between a man and his maternal mother-in-law in some South African indigenous societies.
Arithmetic Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Special Activities Center The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Operation (mathematics) In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation.
Amendment An amendment is a formal or official change made to a law, contract, constitution, or other legal document. It is based on the verb to amend, which means to change for better.
Fourteenth Amendment to the United States Constitution The Fourteenth Amendment (Amendment XIV) to the United States Constitution was adopted on July 9, 1868, as one of the Reconstruction Amendments. Often considered as one of the most consequential amendments, it addresses citizenship rights and equal protection under the law and was proposed in response to issues related to former slaves following the American Civil War.
List of amendments of the Constitution of India As of October 2021, there have been 105 amendments of the Constitution of India since it was first enacted in 1950.There are three types of amendments to the Constitution of India of which second and third type of amendments are governed by Article 368.\n\nThe first type of amendments includes that can be passed by "simple majority" in each house of the Parliament of India.
Foreign Account Tax Compliance Act The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law requiring all non-U.S. foreign financial institutions (FFIs) to search their records for customers with indicia of a connection to the U.S., including indications in records of birth or prior residency in the U.S., or the like, and to report the assets and identities of such persons to the U.S. Department of the Treasury. FATCA also requires such persons to report their non-U.S. financial assets annually to the Internal Revenue Service (IRS) on form 8938, which is in addition to the older and further redundant requirement to report them annually to the Financial Crimes Enforcement Network (FinCEN) on form 114 (also known as 'FBAR').
Terminator (solar) A terminator or twilight zone is a moving line that divides the daylit side and the dark night side of a planetary body. The terminator is defined as the locus of points on a planet or moon where the line through the center of its parent star is tangent.
Age appropriateness Age appropriateness refers to people behaving as predicted by their perspective timetable of development. The perspective timetable is embedded throughout people's social life, primarily based on socially-agreed age expectations and age norms.
Appropriate Behavior Appropriate Behavior is a British-produced comedy film set in New York City, which premiered on 18 January 2014 at the 2014 Sundance Film Festival. Written and directed by Desiree Akhavan, the film—Akhavan's feature directorial debut—stars Akhavan as Shirin, a bisexual Persian American woman in Brooklyn struggling to rebuild her life after breaking up with her girlfriend Maxine (Rebecca Henderson).The film's cast also includes Scott Adsit, Halley Feiffer, Anh Duong, Hooman Majd, Arian Moayed and Aimee Mullins.
Congressional power of enforcement A Congressional power of enforcement is included in a number of amendments to the United States Constitution. The language "The Congress shall have power to enforce this article by appropriate legislation" is used, with slight variations, in Amendments XIII, XIV, XV, XIX, XXIII, XXIV, and XXVI. The variations in the pertinent language are as follows: The Thirteenth Amendment leaves out the word "the", the Fourteenth Amendment states "The Congress shall have the power to enforce, by appropriate legislation, the provisions of this article." In addition to the amendments above, the Eighteenth Amendment states "The Congress and the several States shall have concurrent power to enforce this article by appropriate legislation."\n\n\n== Initial creation and use ==\nThese provisions made their first appearance in the Thirteenth, Fourteenth and Fifteenth Amendments, which were adopted during the Reconstruction period primarily to abolish slavery and protect the rights of the newly emancipated African-Americans.
Retail loss prevention Retail loss prevention (also known as Retail asset protection) is a set of practices employed by retail companies to preserve profit. Profit preservation is any business activity specifically designed to reduce preventable losses.
Pilot error Pilot error generally refers to an accident in which an action or decision made by the pilot was the cause or a contributing factor that led to the accident, but also includes the pilot's failure to make a correct decision or take proper action. Errors are intentional actions that fail to achieve their intended outcomes.
Negative feedback Negative feedback (or balancing feedback) occurs when some function of the output of a system, process, or mechanism is fed back in a manner that tends to reduce the fluctuations in the output, whether caused by changes in the input or by other disturbances.\nWhereas positive feedback tends to lead to instability via exponential growth, oscillation or chaotic behavior, negative feedback generally promotes stability.
Competitors for the Crown of Scotland When the crown of Scotland became vacant in September 1290 on the death of the seven-year-old child Queen Margaret, 13 claimants to the throne came forward. Those with the most credible claims were John Balliol, Robert Bruce, John Hastings and Floris V, Count of Holland.
Violator (comics) Violator (also referred to at times as The Violator) is a supervillain who appears in the Spawn comic books published by Image Comics. The character first appeared in Spawn #2 (cover-dated May 1992) and was created by writer-artist Todd McFarlane.
Risk Factors
INVESTORS FINANCIAL SERVICES CORP Item 1A Risk Factors
Our operating results are subject to fluctuations in interest rates and the securities markets
A significant portion of our fees is based on the market value of the assets we process
Accordingly, our operating results are subject to fluctuations in interest rates and securities markets as these fluctuations affect the market value of assets processed
Our net interest income is earned by investing depositors’ funds in our investment portfolio and, in small part, by making loans
A rising short-term interest rate environment, such as we are now experiencing, generally causes downward pressure on net interest income
Changes in the relationship between short-term and long-term interest rates, referred to as the yield curve, could also adversely affect the market value of, or the earnings produced by, our investment and loan portfolios, and thus could adversely affect our operating results
The current flat yield curve, where short-term rates have increased while long-term rates have failed to increase, has resulted in a decrease in our net interest margin that will continue to have a material impact on our net interest income
Volatility in the equity markets can have a material effect on our asset-based fees
While reductions in asset servicing fees may be offset by increases in other sources of revenue, a sustained downward movement of the broad equity markets will likely have an adverse impact on our earnings
Our growth depends in part on the ability of our clients to generate fund flows by selling their investment products to new and existing investors
Fluctuations in interest rates or the securities markets can lead to investors seeking alternatives to the investment offerings of our clients, which could result in a lesser amount of assets processed and correspondingly lower fees
For example, if the value of equity or fixed income assets held by our clients were to increase or decrease by 10prca for a sustained period of time, we 17 ______________________________________________________________________ estimate currently that this market movement, by itself, would cause a corresponding change of less than 5prca in our earnings per share
In addition, we are experiencing narrower investment portfolio reinvestment spreads, which reduces our net interest income
If reinvestments spreads on the security types we purchase remain narrow, or become narrower, our net interest income will continue to be impacted negatively
A material portion of our revenue is derived from our relationship with Barclays Global Investors, NA (“BGI”) and related entities
As a result of our ongoing relationship with BGI’s iShares and Master Investment Portfolios, our assumption of the operations of the US asset administration unit of BGI in 2001 and our servicing assets for Barclays Global Investors Canada, Ltd, BGI accounted for approximately 18prca, 17prca and 16prca of our net operating revenue for the years ended December 31, 2005, 2004 and 2003, respectively
We recently renewed our US asset administration outsourcing agreement with BGI and we expect that BGI will continue to account for a significant portion of our net operating revenue
We provide services to BGI under long-term contracts that may be terminated before the expiration of the contracts under certain circumstances that we have described in filings with the Securities and Exchange Commission (“SEC”), as described below
While we believe that our relationship with BGI is excellent, the loss of BGI’s business would cause our net operating revenue to decline significantly and would likely have an adverse effect on our quarterly and annual results
The outsourcing agreement was renewed pursuant to an amendment (the “Amendment”) to the Custodial, Fund Accounting and Services Agreement between the Bank and BGI dated May 1, 2001 (the “Custodial Agreement”)
Under the terms of the Amendment, the Custodial Agreement is extended through April 30, 2013
As provided in the Amendment, BGI may terminate the Custodial Agreement upon sixty days prior written notice: (i) as to any underlying account if BGI fails to receive any consent required by law for the Bank to act as servicing agent for such account; (ii) as to any underlying account if the continued provision of services by the Bank to such account would be inconsistent with BGI’s fiduciary duties under applicable law; or (iii) as to the entire Custodial Agreement in the event a conservator or receiver is appointed for the Bank under applicable federal law
In addition, BGI may terminate the Custodial Agreement prior to April 30, 2013 if the Bank fails to meet a certain number of service level commitments for four consecutive months in any rolling twelve-month period or if the Bank materially breaches a material provision of the Custodial Agreement, in both cases subject to customary notice and opportunity to cure provisions
Also, under the terms of the Amendment, the parties have agreed to assess the fee schedule and status of each party and of the industry 90 days prior to November 1, 2009 and to negotiate in good faith any appropriate amendments to the fee schedule arising from that assessment
If the parties are unable to agree on an amended fee schedule by November 1, 2009, BGI may terminate the Custodial Agreement
The Amendment also provides that the Bank will continue to service BGI for up to two years, or longer under certain circumstances, after expiration or termination by BGI of the Custodial Agreement
We may incur losses due to operational errors
The services that we provide require complex processes and interaction with numerous third parties
While we maintain sophisticated computer systems and a comprehensive system of internal controls, and our operational history has been excellent, from time to time we may make operational errors for which we are responsible to our clients
In addition, even though we maintain appropriate errors and omissions and other insurance policies, an operational error could result in a significant liability to us and may have a material adverse effect on our results of operations
18 ______________________________________________________________________ We face significant competition from other financial services companies, which could negatively affect our operating results
We are part of an extremely competitive asset servicing industry
Many of our current and potential competitors have longer operating histories, greater name recognition and substantially greater financial, marketing and other resources than we do
These greater resources could, for example, allow our competitors to develop technology superior to our own
In addition, we face the risk that large mutual fund complexes may build in-house asset servicing capabilities and no longer outsource these services to us
As a result, we may not be able to compete effectively with current or future competitors, which could result in a loss of existing clients or difficulty in gaining new clients
We may incur significant costs defending legal claims
We have been named in lawsuits in US District Court in Massachusetts alleging, among other things, violations of securities laws
In addition, we have been named in a lawsuit in Massachusetts state court alleging, among other things, violations of a covenant of good faith and fair dealing in a contract
While we believe these claims are without merit, we cannot be sure that we will prevail in the defense of these claims
We are also party to other litigation and we may become subject to other legal claims in the future
Litigation is costly and could divert the attention of management