State Street : Global Investor Confidence Falls in June by 0.1 Points

BOSTON, June 28, 2016 - State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for June 2016. The cut off to calculate this month's ICI reading was June 22 and did not account for the June 24 Brexit decision.

The Global ICI declined marginally to 105.9, down 0.1 points from May's revised reading of 106. The North American ICI declined further in June by 2.0 points to 105.9, while the Asian ICI rose from 112.3 to 113.4 and the European ICI increased by 3.5 points to 100.3, ahead of the EU referendum.

'The confidence of European investors rose in June, ahead of the UK's EU referendum. This helps to explain why markets have moved so wildly following the vote to Leave. Investors' were not reducing risk sufficiently ahead of the vote,' said Michael Metcalfe, senior managing director and head of Global Macro Strategy, State Street Global Markets.

The Investor Confidence Index was developed by Kenneth Froot and Paul O'Connell at State Street Associates, State Street Global Exchange's research and advisory services business. It measures investor confidence or risk appetite quantitatively by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their long-term allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.

'June was all about Brexit or Bremain as investors anxiously awaited the outcome of the EU referendum,' commented Ken Froot. 'This month's Investor Confidence Index reading did not capture the market's reaction to the seismic announcement that the UK will leave the European Union. It will be interesting to watch where professionals now perceive value in next month's index.'

About the State Street Investor Confidence Index®
The index is released globally at 10 a.m. Eastern time in Boston on the last Tuesday of each month. More information on the State Street Investor Confidence Index is available at http://www.statestreet.com/ideas/investor-confidence-index.html.

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 trillion in assets under custody and administration and $2 trillion* in assets under management as of March 31, 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 at www.statestreet.com.

* Assets under management were $2.30 trillion as of March 31, 2016. AUM reflects approx. $32.6 billion (as of March 31, 2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.

Investing involve risk and the risk of loss of principal.

The views expressed in this material are through the period ended June 28, 2016 and are subject to change based on market and other conditions.

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those set forth in State Street's 2015 annual report and subsequent SEC filings. State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, June 28, 2016 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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