State Street Investment Analytics Announces Master Trusts Universe Results for Third Quarter 2012

  State Street Investment Analytics Announces Master Trusts Universe Results
  for Third Quarter 2012

Business Wire

BOSTON -- October 31, 2012

State Street Corporation (NYSE: STT), today announced that the median return
of the State Street Universe (SSU) of total plans gained 4.5 percent in the
third quarter 2012. For the year ended September 30, 2012, the universe rose
15.8 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 approximately 900 total plans of a wide range of plan sponsors and
the individual funds that comprise each plan. The 18,000 portfolios in the
State Street Universe constitute a combined asset value of more than $2.3

In the third quarter, total plans less than $1 billion edged out larger plans
gaining 4.6 percent versus 4.5 percent, but for the year ended September 30,
2012 they outperformed larger plans by 0.3 percent rising 16.1 percent versus
15.8 percent. Corporate plans continued to outpace other plan types. They
earned 5.0 percent in the third quarter and 17.4 percent for the year ending
September 30, 2012. They also led the other plan types in the three- and five
year periods, returning 9.5 percent and 2.8 percent, respectively. Endowments
& Foundations lagged behind other plan types over the same periods. They
gained 4.5 percent in third quarter (slightly below Public Funds) and 15.2
percent in the year ending September 30, 2012.

The State Street Universe (SSU)

Periods Ending           Median Return
September 30, 2012
Universe Name            One         One       Three     Five
                             Quarter         Year          Years         Years
Master Trust Funds       4.5         15.8      8.9       2.5
Master Trust Funds >     4.5         15.2      9.4       2.2
$1 Billion
Master Trusts < $1       4.6         16.1      8.9       2.7
Corporate Plans (DB)     5.0         17.4      9.5       2.8
Endowments &             4.5         15.2      8.9       2.2
Public Funds (DB)        4.6         16.4      9.2       2.4
Taft Hartley Plans       4.7         17.1      9.2       2.4

International and global equity and fixed income funds outperformed their US
funds counterparts in the third quarter. International emerging market funds
had the highest returns, rising 7.4 percent, but did not wipe out their second
quarter loss of 8.0 percent, while international developed market funds gained
7.2 percent. US equity funds were up 6.2 percent. For the year ended September
30, 2012, US equity funds’ strong performance of 30.1 percent was more than 10
percent higher than international funds. International emerging market funds
rose 17.6 percent and international developed market funds were up 16.2
percent. Over the last three and five years, US equity funds also outperformed
international funds, posting a strong 13.3 percent return for the three year
period – more than double the return of international funds – and a gain of
2.1 percent for five years versus losses for the international funds. Global
fixed income funds outperformed US fixed income funds in both the third
quarter and the year ending September 30, 2012. They earned 4.2 percent in the
third quarter versus 2.5 percent for US fixed income funds, and 10.3 percent
versus 8.8 percent for the year.

“US equity funds in the top quartile of the universe in the third quarter had
a larger market capitalization, higher earnings per share growth rates and
payout ratios and lower P/E ratios than those in the bottom quartile,” said
Paula Gehr, vice president of State Street Investment Analytics. “We saw
representation of all equity styles in both the top and bottom quartiles,
although very few small value funds made it into the top quartile.”

Characteristics of funds in the top quartile for the full year ending
September 30, 2012 were nearly a mirror image: Top quartile funds had a
smaller market capitalization, lower earnings per share growth rates and
payout ratios but similar P/E ratios to those in the bottom quartile.

The State Street Universe (SSU)

Periods Ending           Median Return
September 30, 2012
Universe Name            One         One       Three     Five
                             Quarter         Year          Years         Years
US Equity Funds          6.2         30.1      13.3      2.1
Global Equity Funds      6.9         19.8      17.7      -1.6
Intl Equity Funds –      7.2         16.2      4.3       -3.1
Developed Mkts
Intl Equity Funds –      7.4         17.6      6.1       -1.2
Emerging Mkts
US Fixed Income          2.5         8.8       7.9       7.5
Global Fixed Income      4.2         10.3      7.8       7.9
Hedge Funds              2.6         5.6       5.4       1.3

State Street Investment Analytics (SSIA) provides performance and analytics
services and employs a team of more of 700 dedicated investment performance
professionals across 18 offices worldwide. SSIA services approximately 1,400
clients with asset volumes exceeding $11 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 eleven 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

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
$23.4 trillion in assets under custody and administration and $2.1 trillion*
in assets under management at September 30, 2012, State Street operates in 26
countries and more than 100 geographic markets worldwide. For more
information, visit State Street’s website at

*This AUM includes the assets of the SPDR Gold Trust (approx. $75.3 billion as
of September 30, 2012), for which State Street Global Markets, LLC, an
affiliate of State Street Global Advisors serves as the marketing agent.


State Street Corporation
Marie McGehee, +1 617-664-1898
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