London - October 12, 2016- New research commissioned by State Street Corporation (NYSE: STT), reveals that Local Authority Pension Funds (LGPS) are continuing to grow both their assets and fund membership.

The findings reveal the number of active members between 2013 and 2015 increased from around approximately 1.7 million people to 2.1 million. Contributions from local government to their pension funds also increased by 31 percent, and contributions from members rose by six percent.

Nick Wright, head of UK, Middle East, Africa, Netherlands and Nordics at State Street said, 'LGPS member funds are facing huge challenges but overall we believe they are positioned well with the asset pooling project. We can see that they are investing a lot of time and energy in ensuring they understand the operational and regulatory challenges ahead of them, and are developing strong strategies.'

An additional survey of 400 pension professionals, commissioned by State Street, found the sector is facing significant challenges globally.

Four out of ten (40 percent) of the respondents, claim it's getting harder to ensure that they don't breach local regulatory limits on exposure to specific asset classes. To improve operations and efficiency levels, 61 percent are looking to insource more risk management tasks; and 53 percent intend to carry out more investment related functions in-house.

Andy Todd, head of UK pensions and banks, Asset Owner Solutions at State Street said, 'As pension funds come under pressure to deliver better long-term returns to members at lower costs, it's clear that pooling knowledge, as well as assets, is not solely a cost-saving measure, but also as an important means of developing new capabilities and opening up fresh opportunities.'

With this in mind and as funds expand, asset owner governance will fall under review. 61 percent say that they intend to adjust the balance of responsibilities between their Fund's board and management; 51 percent are looking to increase the autonomy of their investment function; and 48 percent are looking to change their process of recruiting new board members.

About the Research

Analysis conducted by Citigate Dewe Rogerson in August 2016 from the Pensions Fund Online database.

On behalf of State Street, Longitude Research, a global research firm, conducted the survey of institutional asset owners in October and November of 2015. The survey garnered 400 responses from pension fund professionals, spanning both defined contribution and defined benefit assets across 20 countries. More than two-thirds (68 percent) of respondents came from private sector pension systems, 25 percent from public sector pension funds and 7 percent from superannuation funds.


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 $27.78 trillion in assets under custody and administration and $2.3 trillion* in assets under management as of June 30, 2016, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street's website atwww.statestreet.com.

* Assets under management were $2.30 trillion as of June 30, 2016. AUM reflects approximately $40 billion (as of June 30, 2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.

Important Information:

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The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.

The views expressed in this material are as of October 12, 2016 and subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

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State Street Corporation published this content on 14 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 October 2016 17:05:02 UTC.

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