BOSTON - January 29, 2013 - State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), today released the results of the State Street Investor Confidence Index® (ICI) for January 2013. 

The Global ICI rose for a second consecutive month, increasing by 5.4 points from December's (revised) reading of 81.4 to finish at 86.8. The increase was driven by North American institutions, whose confidence rose 7.8 points from December's (revised) level of 78.5 to reach 86.3. Institutional investors in Asia also felt more optimistic, and this pushed the Asian ICI up from 87.1 in December to 91.0 in January, an increase of 3.9 points. In contrast, risk appetite among European institutional investors extended its decline, falling 4.5 points from a (revised) reading of 94.1 in December to settle at 89.6.

The State Street Investor Confidence Index was developed by Harvard University professor Kenneth Froot and Paul O'Connell of State Street Associates. 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.

"2013 has opened with something of a turnaround in demand for global equities by institutional investors," commented Froot. "This comes on the heels of a two-and-a-half year period of persistent 'de-risking' by these institutions. We will be watching the data closely to see if this is a short-term deviation from trend, as we saw in mid-2012, or whether it signals a more concerted effort to rebuild core equity positions."

"In recent months we have seen the disparities in confidence that prevailed across regions for much of 2011 and 2012 dissipate," added O'Connell. "There is now more global consensus on the appropriate stance to take towards risky assets. It remains the case that all three regional indices are below the long-term neutral level of 100, but our underlying data reveal consistent recent buying of equities in the US, Japan, Europe (excluding the UK) and emerging markets."

About State Street Global Markets
State Street Global Markets provides specialized investment research and trading in foreign exchange, equities, fixed income and derivatives.  Its goal is to enhance and preserve portfolio values for asset managers and asset owners.  From its unique position at the crossroads of global markets, it creates and unlocks value for its client with original investment behavior research, innovative portfolio strategies, trade process optimization, and global connectivity across multiple asset classes and markets.

State Street Global Markets' research team of leading academic and industry experts is committed to continually advancing the science, including theory and application of its proprietary investor behavior research and innovative portfolio and risk management technologies. 

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/investorconfidenceindex. 

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 $24.4 trillion in assets under custody and administration and $2.1 trillion in assets under management at December 31, 2012, State Street operates in 29 countries and more than 100 geographic markets.  For more information, visit State Street's web site at www.statestreet.com.

* This AUM includes the assets of the SPDR Gold Trust (approx. $72.2 billion as of December 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent

The views expressed in this material are the views of State Street through the period ended January 29, 2013 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 2011 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, January 29, 2013, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.

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