State Street : Investor Confidence Rises in September by 5.8 Points to 95.5

September 27, 2016 - State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for September 2016.

The Global ICI increased to 95.5, up 5.8 points from August's revised reading of 89.7. The improvement in sentiment was driven by an increase in the Asian ICI from 105.9 to 118.6, along with the North American ICI rising from 89.6 to 92.3. By contrast, the European ICI decreased from 86.8 to 84.9.

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.

'Globally, institutional investor confidence remains weak in September, in line with a subdued economic outlook and persistent low inflation,' said Jessica Donohue, executive vice president and chief innovation officer, State Street Global Exchange. 'Regionally, inaction by the European Central Bank has prompted stock market volatility and has dented European sentiment even further. Meanwhile, investors are more optimistic on Asia, likely encouraged by continued policy support in China.'

'North American institutional investors remain risk averse at the moment despite the more optimistic outlook for the economy and the Fed's assessment of the near-term risks to be 'roughly balanced',' said Froot. 'It appears that much of the risk sentiment is influenced by the US politics, with the focus shifting to the upcoming presidential election and its implications.'

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 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 $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 at www.statestreet.com.
* Assets under management were $2.30 trillion as of June 30, 2016. AUM reflects approx. $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.

The views expressed in this material are the views of State Street Associates and Jessica Donohue through the period ended September 27, 2016 and are subject to change based on market and other conditions.
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.
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, September 27, 2016 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.
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Expiration Date: 09/30/2017

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