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 rose 8.0% in the third quarter of 2010, following the 4.4% loss in the prior quarter. For the twelve month period ending September 30, 2010, the universe returned 10.1%. The SSU consists of a diverse range of funds custodied at State Street and funds provided by the Independent Consultants Cooperative (ICC). It consists of approximately 1100 total plans of a wide range of plan sponsors and the nearly 20,000 individual funds that comprise each plan. The combined asset value of the portfolios in the SSU exceeds $1.8 trillion as of September 30, 2010.

In the third quarter, master trust funds of greater than $1 billion returned 8.2%, slightly higher than smaller Master Trust Funds, which returned 8.0%. Corporate Plans were up 10.7%, with the highest returns for the year ending September 30, 2010, while Taft Hartley Plans gained 10.2%. For the quarter, plan results ranged from 8.0% (Endowments & Foundations) to 8.7% (Corporate Plans).

 

The State Street Universe (SSU)

 

Periods Ending March 31, 2010

       

Median Return

Universe Name

       

One Quarter

       

One Year

       

Three Years

       

Five Years

Master Trust Funds         8.0         10.1         -1.0         4.0 Master Trust Funds > $1 Billion         8.2         10.5         -1.6         4.0 Master Trusts < $1 Billion         8.0         10.0         -0.8         3.9 Corporate Plans (DB)         8.7         10.7         -0.8         4.1 Endowments & Foundations         8.0         10.3         -1.3         4.1 Public Funds (DB)         8.4         10.3         -1.5         3.8 Taft Hartley Plans (DB)         8.2         10.2         -1.3         3.4  

Equity Funds rebounded strongly in the third quarter, more than offsetting second quarter losses. International Emerging Market Equity Funds rose 19.1% in the third quarter, while US Equity Funds gained 11.3%. International Development Market Equity rose 16.2% and Global Equity Funds rose 14.5%. For the twelve month period ending September 30, 2010, International Emerging Equity Funds again had the highest returns, rising 20.2%, while International Developed Market Equity Funds had the smallest gains, rising 5.8%. US Equity Funds rose 11.8% and Global Equity Funds rose 9.0%.

Fixed Income Funds performed well over the last 12 months, with both US Fixed Income Funds and Global Fixed Income Funds up 10.2%. In the third quarter, Global Fixed Income Funds gained 7.5% while US Fixed Income Funds rose 3.1%.

 

The State Street Universe (SSU)

 

Periods Ending September 30, 2010

       

Median Return

Universe Name

       

One Quarter

       

One Year

       

Three Years

       

Five Years

US Equity Funds         11.3         11.8         -5.2         1.9 Global Equity Funds         14.5         9.0         -6.7         3.5 Intl Equity Funds – Developed Mkts         16.2         5.8         -7.4         3.7 Intl Equity Funds – Emerging Mkts         19.1         20.2         -1.4         12.5 US Fixed Income Funds         3.1         10.2         7.7         6.7 Global Fixed Income Funds         7.5         10.2         9.2         7.9 Hedge Funds         2.7         6.2         -0.8         3.8  

State Street’s Investment Analytics (SSIA) Group provides performance and analytics services and employs more than 600 dedicated investment performance professionals across 15 offices worldwide. SSIA serves approximately 1,400 clients with asset volumes exceeding $7 trillion, (as of June 30, 2010) offering comprehensive services in performance, risk and strategic analysis that help them monitor and measure the success of their investment strategies in any market and in any asset class, including alternative investments.

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

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management, and investment research and trading. With $20.2 trillion in assets under custody and administration and $1.9 trillion in assets under management at September 30, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s website at www.statestreet.com.