State Street Corporation

State Street Corporation

March 22, 2005 10:23 ET

Investor Confidence Index Rises Sharply to 93.1 in March; U.S. Institutional Investors More Upbeat than European and Asian Counterparts


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STATE STREET CORPORATION

NYSE SYMBOL: STT

MARCH 22, 2005 - 10:23 ET

Investor Confidence Index Rises Sharply to 93.1 in
March; U.S. Institutional Investors More Upbeat than
European and Asian Counterparts

BOSTON--(CCNMatthews - Mar 22, 2005) -

State Street Global Markets, the investment research and trading arm of
State Street Corporation (NYSE:STT), released today the results of the
State Street Investor Confidence Index(SM) for March 2005.

According to the March index, investor confidence increased by 3.3
points from February's revised reading of 89.8.

Developed by Harvard University professor Ken Froot and Paul O'Connell
of State Street Associates, the research unit of State Street Global
Markets, the index measures investor confidence on a quantitative basis,
analyzing actual buying and selling patterns of institutional investors.
The index is based on the financial theory that assigns precise meaning
to changes in investor risk sentiment, or the willingness of investors
to hold proportionally more or less of their portfolio in higher-risk
investments.

"This month the risk appetite of institutional investors unambiguously
improved, as we've witnessed an increasing willingness among
professional investors to hold risky assets in their portfolios,"
commented Froot. "Leading the way in this movement are U.S. investors,
while it appears that Asian and European investors actually saw
reductions in levels of institutional investor confidence."

"A key feature of the State Street Investor Confidence Index is that it
doesn't always move in the same direction as market prices," added
O'Connell. "Although equity prices have been flat or declining over the
past month, analysis of institutional investor holdings shows an
increased demand for risky assets, and this may be partly a function of
interest rates. Investors' risk tolerance is also currently well up from
the levels seen throughout much of 2004."

Since its launch in September of 2003, the State Street Investor
Confidence Index(SM) has become a key economic indicator for asset
owners, investment managers and central banks. As the only index
providing a quantitative measure tracking the common buying patterns of
institutional investors around the world, the State Street Investor
Confidence Index(SM) offers a unique look into the investment behavior
and decisions of thousands of professional investors and their
investment decisions.

About State Street Global Markets:

State Street Global Markets provides specialized investment research and
trading. Its goal is to enhance and preserve portfolio values for asset
managers and asset owners. From its unique position at the crossroads of
the global markets, it creates and unlocks value for its clients with
original flow-based research, innovative portfolio strategies, trade
process optimization, and global connectivity across multiple asset
classes and markets.

About State Street Associates:

Founded in 1999 in Cambridge, Mass., State Street Associates develops
portfolio and flow research, currency management, asset allocation
services and designs strategy tools to support the needs of global
portfolio managers.

About the State Street Investor Confidence Index(SM):

The index is released globally at 10 a.m. Eastern time in Boston on the
second to last Tuesday of each month. More information on the State
Street Investor Confidence Index, and the calendar of release dates, is
available at http://www.statestreet.com/investorconfidenceindex. The
previous month's calculations for the index are revised to account for
trading activity through the end of the reporting period.

About State Street

State Street Corporation (NYSE: STT) is the world's leading specialist
in providing institutional investors with investment servicing,
investment management and investment research and trading. With $9.5
trillion in assets under custody and $1.4 trillion in assets under
management, as of December 31, 2004, State Street operates in 25
countries and more than 100 markets worldwide. For more information,
visit State Street's Web site at www.statestreet.com.

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 related to the pace at which State Street adds new clients or at
which existing clients use additional services, the value of global and
regional financial markets, the pace of cross-border investment
activity, changes in interest rates, the pace of worldwide economic
growth and rates of inflation, the extent of volatility in currency
markets, consolidations among clients and competitors, State Street's
business mix, the dynamics of markets State Street serves, and State
Street's success at integrating and converting acquisitions into its
business. Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking statements
are set forth in State Street's 2004 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, March 22, 2005,
and the company will not undertake efforts to revise those
forward-looking statements to reflect events after this date.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    State Street Corporation
    Brian Willinsky, 617-664-8576