STT State Street Corporation

State Street Corporation (NYSE:STT), one of the world’s leading providers of financial services to institutional investors, today announced that the median return of the State Street Universe (SSU) of total plans fell 4.4% in the second quarter of 2010, versus a 3.4% gain in the prior quarter. For the year ended June 30, 2010, the plans earned 13.1%. The SSU consists of a diverse range of funds custodied at State Street and funds provided by the Independent Consultants Cooperative (ICC). It includes the total plans of a wide range of plan sponsors and the individual funds that comprise each plan. The approximately 20,000 portfolios in the State Street Universe constitute a combined asset value exceeding $2 trillion.

In the first quarter, master trust funds of greater than $1 billion fell 4.0%, losing less than smaller master trust funds, which fell 4.4%. Corporate Plans were up 14.3%, with the highest returns for the year ending June 30, 2010 while Public Funds gained the least, rising 12.7%. For the quarter, plan results all fell within a narrow range.

The State Street Universe (SSU)

 

Periods Ending June 30, 2010

 

Median Return

 

Universe Name

 

One Quarter

 

One Year

 

Three Years

 

Five Years

  Master Trust Funds   -4.4   13.1   -3.0   3.1   Master Trust Funds > $1 Billion   -4.0   13.1   -3.8   3.1   Master Trusts < $1 Billion   -4.4   13.2   -2.8   3.1   Corporate Plans (DB)   -4.6   14.3   -2.9   3.4   Endowments & Foundations   -4.5   13.7   -3.2   3.2   Public Funds (DB)   -4.9   12.7   -3.8   2.7   Taft Hartley Plans (DB)   -4.7   13.2   -3.6   2.3

US Equity Funds fell 10.8% in the first quarter, trailing International Emerging Market Funds, but less than International Developed Market Equity Funds which lost 12.3%. Although International Emerging Market Equity funds fell 8.4% in the second quarter, on a year-over-year basis they rebounded sharply, rising 23.3% in the last 12 months after plummeting 28.0% in the prior year. For the year ending June 30, 2010, US Equity Funds also showed strong gains, up 16.6%. Fixed Income Funds also did well over the last 12 months, with Global Fixed Income Funds up 11.0% and US Fixed Income Funds rising 12.4%.

The State Street Universe (SSU)

 

Periods Ending June 30, 2010

 

Median Return

Universe Name

 

One Quarter

 

One Year

 

Three Years

 

Five Years

US Equity Funds   -10.8   16.6   -8.4   0.5 Global Equity Funds   -11.4   12.3   -10.1   3.0 Intl Equity Funds – Developed Mkts   -12.3   9.0   -11.2   2.7 Intl Equity Funds – Emerging Mkts   -8.4   23.3   -2.8   12.3 US Fixed Income Funds   2.9   12.4   7.5   5.9 Global Fixed Income Funds   1.2   11.0   7.9   5.9 Venture Capital Funds   0.4   11.2   -0.7   5.7 Hedge Funds   -1.6   9.0   -1.8   4.0

State Street’s Investment Analytics team offers services through global locations including Alameda, Amsterdam, Boston, Dublin, Edinburgh, Frankfurt, London, Luxembourg, New York, Paris, Sydney, Toronto and Zurich. It calculates performance and analytics for over 1100 clients globally on asset volumes exceeding $6.5 trillion.

The Independent Consultants Cooperative is a consortium of independent investment consulting firms that deliver superior value-added products to their clients. The ICC is currently comprised of thirteen well-established firms located across the country that collectively consult to 10% of the industry’s institutional assets. In order to avoid conflicts of interest, none of the ICC member firms offers investment management services. Rather, the ICC focuses solely on the continuous refinement of investment consulting products, systems and diagnostic databases for the collective benefit of their clientele. For more information about the Independent Consultants Cooperative and its member firms, visit the web site at www.icc-group.com

About State Street Corporation

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $19 trillion in assets under custody and administration and $1.8 trillion in assets under management at June 30, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.