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 gained 7.0 percent in the first quarter 2012. For the year ended March 31, 2012, the universe rose 4.1 percent. The SSU consists of a diverse range of funds custodied at State Street and funds provided by the Independent Consultants Cooperative (ICC). It includes over 1,000 total plans of a wide range of plan sponsors and the individual funds that comprise each plan. The 21,000 portfolios in the State Street Universe constitute a combined asset value of nearly $2.7 trillion.

In the first quarter, total plans less than $1 billion earned more than larger plans, up 7.0 percent versus 6.8 percent. For the twelve months ended March 31, 2012, large plans outpaced smaller plans, gaining 4.3 percent versus 4.0 percent. Of the plan type types, Public Funds had the highest returns in the first quarter, rising 7.5 percent. For the year ended March 31, 2012, Corporate defined benefit plans outperformed other plan types, gaining 4.7 percent. Corporate plans also led in the three- and five-year periods as well. Over the last three years, they rose 16.9 percent – a full percentage point higher than other plan types. Endowments & Foundations had the smallest gains over the past twelve months, gaining 3.2 percent.

“Equity allocations continue to rise, but are still below where they were 5 years ago,” said Paula Gehr, vice president of State Street Investment Analytics. “Overall, they represent about 45 percent of master trust assets. Public Fund equity allocations are even with their five year ago mark, but Corporate defined benefit allocations are nearly 5 percent lower and Endowment & Foundations are 6.6 percent lower.”

The State Street Universe (SSU)

Periods Ending March 31, 2012

       

Median Return

Universe Name

       

One Quarter

     

One Year

     

Three Years

     

Five Years

Master Trusts         7.0       4.1       15.7       3.3 Master Trusts > $1 Billion         6.8       4.3       15.3       3.0 Master Trusts < $1 Billion         7.0       4.0       15.9       3.4 Corporate Plans (DB)         7.2       4.7       16.9       3.4 Endowments & Foundations         7.3       3.2       15.8       3.1 Public Funds (DB)         7.5       4.4       15.6       3.3 Taft Hartley Plans (DB)         7.0       4.0       15.9       3.2                          

Equity funds did well in the first quarter. International Emerging Market Equity Funds had the highest returns, growing 14.7 percent. US Equity Funds posted another quarter of double-digit gains, rising 12.8 percent in the first quarter. For the year, US Equity Funds were up 4.9 percent while international equities lost ground. International Emerging Market Equity Funds had the greatest decline, down 8.0 percent. Fixed income funds posted relatively modest gains in the first quarter but outperformed equity funds for the year. US Fixed Income Funds had the highest returns for the year, rising 7.2 percent while Global Fixed Income Funds grew 6.1 percent. Hedge Funds were up 3.3 percent in the quarter but flat for the year.

The State Street Universe (SSU)

Periods Ending March 31, 2012

       

Median Return

Universe Name

       

One Quarter

     

One Year

     

Three Years

     

Five Years

US Equity Funds         12.8       4.9       24.9       3.0 Global Equity Funds         11.8       -0.5       20.5       0.3 Intl Equity Funds – Developed Mkts         11.8       -5.4       18.4       -1.4 Intl Equity Funds – Emerging Mkts         14.7       -8.0       26.5       4.3 US Fixed Income Funds         1.3       7.2       9.8       6.9 Global Fixed Income Funds         3.1       6.1       11.9       7.9 Hedge Funds         3.3       -0.3       8.5       2.1                          

State Street Investment Analytics (SSIA) provides performance and analytics services and employs a staff of more of 700 dedicated investment performance professionals across 16 offices worldwide. SSIA services approximately 1,400 clients with asset volumes exceeding $10 trillion, offering comprehensive services in performance, risk, compliance 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 twelve well-established firms located across the country that collectively consult to 10 percent 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 servicing, investment management and investment research and trading. With $23.2 trillion in assets under custody and administration and $2 trillion* in assets under management at March 31, 2012, State Street operates in 29 countries and more than 100 geographic markets. For more information, visit State Street’s web site at www.statestreet.com

*This AUM includes the assets of the SPDR Gold Trust (approx. $68 billion as of March 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.