"The confidence of European managers fell once again in February to its lowest level since last April"

BOSTON, February 24, 2015 - State Street Global Exchange today released the results of the State Street Investor Confidence Index® (ICI) for February 2015.

The Global ICI decreased to 105.2, down 1.4 points from January's revised reading of 106.6. Confidence among European investors declined the most, with the European ICI falling 8.2 points to 105.9, down from January's revised reading of 114.1, while in Asia the ICI fell by 5.3 points to 93.8. However, the North American ICI rose by 3.1 points to 104.3.

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.

"Improved labor market conditions in the US may have boosted North America investor sentiment," commented Froot. "However, given the lack of inflationary pressures in the US, markets may push out their expectation of the first interest rate hike to later than the previously anticipated June date, which could provide a lift to sentiment."

"The confidence of European managers fell once again in February to its lowest level since last April," added Michael Metcalfe, senior vice president and head of Global Macro Strategy, State Street Global Markets. "This suggests either that investors are not as complacent about events in Greece as some bond spreads suggest or that the promise of QE in Europe has proved more alluring than its reality. Neither interpretation is particularly good news."

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 provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $28.19 trillion in assets under custody and administration and $2.45 trillion* in assets under management as of December 31, 2014, 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 web site at www.statestreet.com.

*Assets under management include the assets of the SPDR® Gold ETF (approximately $27.3 billion as of December 31, 2014), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

The views expressed in this material are the views of State Street through the period ended February 24, 2015 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 2013 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, February 24, 2015 and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

CORP-1311

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