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State Street Enhances Risk Management Platform with Factor-Risk Modelling and Data from more than 4,000 ETFs

STT

State Street Enhances Risk Management Platform with Factor-Risk Modelling and Data from more than 4,000 ETFs

Adds Northfield Tools and Morningstar Data to Enhance truView® Risk Management Platform

State Street Corporation (NYSE: STT) today announced that it will work with Northfield Information Services (Northfield), a provider of financial risk models and analytical tools, and Morningstar, Inc., a leading provider of independent investment research, to enhance its truView® Risk Management Platform. truView provides an online, end-to-end risk solution with broad multi-asset class coverage that includes data collection, exception handling and calculating of risk results.

“As it has become more difficult to anticipate market movements based on events, factor risk modelling has emerged as a popular method for calculating portfolio risk,” said Mark McKeon, global head of product, State Street Global Exchange. “When evaluating risk and performance, factor risk modelling offers our clients a more insightful view of how market forces may influence their portfolio, and as a result, the ability to better and more quickly manage their investments as necessary.”

State Street will integrate Northfield’s risk factor tools into its truView platform, including risk factor decomposition; its “Everything Everywhere” multi-asset class risk model; and its “optimizer”, a risk analysis and portfolio allocation tool.

The “Everything Everywhere” risk model calculates risk measures across all asset classes, public investment types, and alternative investments for institutional investors. Its risk model database includes more than 61,000 equities; over 550,000 fixed income securities; 1.3 million municipal bonds; 1 million mortgage back-pools; approximately 90,000 mutual funds and ETFs; and 300,000 CMOs and asset backed securities from 68 developed and emerging market countries, as well as 57 currencies1.

“ETFs are becoming more popular investments as investors seek to add flexibility to their portfolios,” continued McKeon. “But investors need more visibility into ETF holdings and the ability to accurately incorporate these investments with other asset classes for more cohesive oversight and risk management.”

State Street will also integrate Morningstar’s data for more than 4,000 exchange-traded funds (ETFs) into its truView platform, to help clients better capture ETF potential and allow them to model ETFs alongside other asset classes in risk and other analytics.

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.

Important Information

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

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.

CORP-2031

1 Northfield Information Services, data as of May 2016.

State Street Corporation
Julie Kane, 1-617-664-3001
jekane@statestreet.com
@StateStreet



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