I'd also like to remind you that you can find the slide presentation regarding the corporation's investment portfolio, as well as our fourth quarter and full year 2010 earnings press release, which includes reconciliations of non-GAAP measures referred to on this webcast in the Investor Relations portion of our website.Now I'll turn the call over to Jay. Joseph Hooley Thanks, Kelly, and good morning. Overall, 2010 was a successful year as we continue to grow the core franchise, put some issues behind us and put in place a new initiative to transform our operating model to position the company for accelerated global growth. We earned $3.40 per share on an operating basis, a slight increase above $3.32 in 2009 on the revenue increase of more than 7%. We continue to be well-positioned and the demand for our core services was strong as evidenced by our Service Fee growth of 18% and Management Fee growth of 8% compared with 2009. Trading services revenue in the fourth quarter improved from the third quarter by 36%, a hopeful sign of recovery in capital markets. During the year, Securities Finance revenue was adversely affected by the low interest-rate environment, compressed spreads and rather flat investor demand for securities borrowing. During the fourth quarter, we took important steps to reposition the company, both for the near term, as well as for the future. First, we announced the global multiyear program designed to enhance service excellence and innovation, deliver increased efficiencies in our operating model and position the company for accelerated growth. The program includes operational and informational technology enhancements and targeted cost initiatives, including reductions in force, the first of which was announced in late November. This program is expected to transform our business operating model and is projected to result in an average annual run rate savings of between $575 million and $625 million by the end of 2014. Jim Phalen, Executive Vice President and Head of Global Operations and Technology, will speak in more detail about this program at our Investor and Analyst Forum in February.
Second, we sold about $11 billion in securities in order to reposition our investment portfolio, increasing our flexibility in deploying capital, enhancing our capital ratios under evolving regulatory capital standards and reducing our exposure to certain asset classes. This transaction positions us very well for the implementation of Basel III capital requirements, as we currently understand them. We also submitted our capital plan review to the Federal Reserve on January 7, and expect to hear back from them in late March.I'm also pleased to report that we closed the acquisition of Bank of Ireland Asset Management business last week. We expect this business will enhance our active equity offerings through SSgA. Comparing our fourth quarter revenue with that of the third quarter, we achieved growth in every fee revenue line. We achieved operating basis earnings per share of $0.87, an increase of 23% compared with the $0.71 in the fourth quarter of last year, and up slightly from the third quarter of 2010. Based on our mandate to be installed, the new wins and our strong pipeline, we expect the momentum in Service Fee and Management Fee revenue to continue and we're slightly more optimistic about the outlook for our Trading Services business in 2011, than we were in 2010. Additionally, the impact from the Intesa and Mourant acquisitions, as well as the recent acquisition of Bank of Ireland Asset Management business supports our revenue outlook. However, we do expect to face headwinds in 2011, principally due to the impact of the continued low rate environment on net interest revenue and Securities Finance, as well as the impact of the investment portfolio repositioning. In addition, based on the changing regulatory environment, we expect to see increases in various regulatory fees and other related costs. Read the rest of this transcript for free on seekingalpha.com