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 5.3% in the fourth quarter of 2010. For the year ended December 31, 2010, the universe earned 12.4%. 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 19,000 portfolios in the State Street Universe constitute a combined asset value of nearly $2 trillion.

In 2010, master trust funds of greater than $1 billion returned 12.7%, slightly higher than smaller master trust funds, which returned 12.2%. Taft Hartley Plans were up 13.6%, with the highest returns for the year ending December 31, 2010 while Corporate Plans gained 13.1%. Endowments & Foundations trailed behind the other funds, rising 12.4%. In the fourth quarter, Taft Hartley Plans also had the highest returns in the fourth quarter, up 6.1%.

“Master Trusts posted strong gains in 2010 following the robust recovery in 2009 and are coming close to recovering the losses experienced in 2008. Funds with higher exposure to equities did best as both US and foreign equities continued to perform well,” said William Pryor, senior vice president and head of State Street Investment Analytics.

The State Street Universe (SSU)

     

 

    Periods Ending December 31, 2010       Median Return Universe Name       One Quarter       One Year       Three Years       Five Years Master Trust Funds       5.3       12.4       1.0       4.5 Master Trust Funds > $1 Billion       5.6       12.7       0.3       4.5 Master Trusts < $1 Billion       5.2       12.2       1.2       4.5 Corporate Plans (DB)       5.4       13.1       0.9       4.7 Endowments & Foundations       5.2       12.4       1.0       4.7 Public Funds (DB)       5.9       12.7       0.8       4.5 Taft Hartley Plans (DB)       6.1       13.6       1.0       4.4

US Equity Funds rose 11.8% in the fourth quarter. For the year ending December 31, 2010, International Emerging Market Equity funds rose 19.4%, followed by US Equity Funds which gained 17.8%. Other types of equity funds also showed gains: International Developed Market Equity Funds rose 10.5% and Global Equity Funds rose 13.7%. Fixed Income Funds were flat in the fourth quarter, but rose over the last 12 months, with Global Fixed Income Funds up 8.7% and US Fixed Income Funds gaining 8.0%.

The State Street Universe (SSU)

     

 

    Periods Ending December 31, 2010       Median Return Universe Name       One Quarter       One Year       Three Years       Five Years US Equity Funds       11.8       17.8       -0.6       3.8 Global Equity Funds       7.6       13.7       -3.4       4.3 Intl Equity Funds – Developed Mkts       6.9       10.5       -5.3       4.2 Intl Equity Funds – Emerging Mkts       7.2       19.4       0.4       12.6 US Fixed Income Funds       -0.6       8.0       6.6       6.3 Global Fixed Income Funds       -0.7       8.7       7.7       7.8 Hedge Funds       3.3       7.2       -0.2       4.1

State Street Investment Analytics (SSIA) group provides performance and analytics services and employs a staff of more than 600 dedicated investment performance professionals across 15 offices worldwide. SSIA serves approximately 1,400 clients with asset volumes exceeding $7.5 trillion, (as of September 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 Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment management, investment research and trading and investment servicing. With $21.5 trillion in assets under custody and administration and $2 trillion in assets under management at December 31, 2010, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s website at www.statestreet.com.