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State Street Global Advisors
Overview and Strategic Priorities
Morgan Stanley Annual Financial Services Conference
Ron O’Hanley
Vice Chairman of State Street Corporation and
President & CEO of State Street Global Advisors
Wednesday, June 14, 2017
Exhibit 99.1
1
This presentation may contain statements considered “forward-looking statements” within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition,
results of operations, strategies, financial portfolio performance, dividend and stock purchase programs, outcomes of legal proceedings, market growth, acquisitions, joint ventures and divestitures, cost savings and transformation initiatives, client
growth and new technologies, services and opportunities, as well as industry, regulatory, economic and market trends, initiatives and developments, the business environment and other matters that do not relate strictly to historical facts.
Terminology such as “will,” “mission,” “trend,” “plan,” “expect,” “intend,” “objective,” “forecast,” “outlook,” “believe,” “priority,” “anticipate,” “estimate,” “seek,” “may,” “target,” “strategy” and “goal,” or similar statements or variations of such terms, are
intended to identify forward-looking statements, although not all forward-looking statements contain such terms. These statements are subject to various risks and uncertainties, which change over time, are based on management's expectations
and assumptions at the time the statements are made, and are not guarantees of future results. Management's expectations and assumptions, and the continued validity of the forward-looking statements, are subject to change due to a broad
range of factors affecting the national and global economies, regulatory environment and the equity, debt, currency and other financial markets, as well as factors specific to State Street and its subsidiaries, including State Street Bank.
Factors that could cause changes in the expectations or assumptions on which forward-looking statements are based cannot be foreseen with certainty and include, but are not limited to: the financial strength and continuing viability of the
counterparties with which we or our clients do business and to which we have investment, credit or financial exposure, including, for example, the direct and indirect effects on counterparties of the sovereign-debt risks in the U.S., Europe and other
regions; increases in the volatility of, or declines in the level of, our net interest revenue, changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of
investment securities) and the possibility that we may change the manner in which we fund those assets; the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits, and the
liquidity requirements of our clients; the level and volatility of interest rates, the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses and the performance and volatility of securities, credit, currency
and other markets in the U.S. and internationally; and the impact of monetary and fiscal policy in the United States and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our
clients; the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the
recognition of an impairment loss in our consolidated statement of income; our ability to attract deposits and other low-cost, short-term funding, our ability to manage levels of such deposits and the relative portion of our deposits that are determined
to be operational under regulatory guidelines and our ability to deploy deposits in a profitable manner consistent with our liquidity needs, regulatory requirements and risk profile; the manner and timing with which the Federal Reserve and other
U.S. and foreign regulators implement or reevaluate changes to the regulatory framework applicable to our operations, including implementation or modification of the Dodd-Frank Act, the Basel III final rule and European legislation (such as the
Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directives and Markets in Financial Instruments Directive II); among other consequences, these regulatory changes impact the
levels of regulatory capital we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, and restrictions on banking and financial activities. In addition, our regulatory posture and related
expenses have been and will continue to be affected by changes in regulatory expectations for global systemically important financial institutions applicable to, among other things, risk management, liquidity and capital planning, resolution
planning, compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations; we may not successfully implement our plans to have a credible resolution plan by July
2017, or that plan may not be considered to be sufficient by the Federal Reserve and the FDIC, due to a number of factors, including, but not limited to, challenges we may experience in interpreting and addressing regulatory expectations, failure to
implement remediation in a timely manner, the complexities of development of a comprehensive plan to resolve a global custodial bank and related costs and dependencies. If we fail to meet regulatory expectations to the satisfaction of the Federal
Reserve and the FDIC in any future submission, we could be subject to more stringent capital, leverage or liquidity requirements, or restrictions on our growth, activities or operations; adverse changes in the regulatory ratios that we are required or
will be required to meet, whether arising under the Dodd-Frank Act or the Basel III final rule, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or
external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital ratios that cause changes in those ratios as they are measured from period to period; requirements to obtain the prior approval or non-
objection of the Federal Reserve or other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, investments in subsidiaries,
dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted; changes in law or regulation, or the enforcement of law or
regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements,
margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs; economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or
political instability; for example, the U.K.'s decision to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or, similarly, financial markets may react sharply or abruptly to actions taken by the new
administration in the United States; our ability to develop and execute State Street Beacon, our multi-year transformation program to digitize our business, deliver significant value and innovation for our clients and lower expenses across the
organization, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment; our ability
to promote a strong culture of risk management, operating controls, compliance oversight, ethical behavior and governance that meets our expectations and those of our clients and our regulators, and the financial, regulatory, reputation and other
consequences of our failure to meet such expectations; the impact on our compliance and controls enhancement programs of the appointment of a monitor under the deferred prosecution agreement with the DOJ and compliance consultant
expected to be appointed under a potential settlement with the SEC, including the potential for such monitor and compliance consultant to require changes to our programs or to identify other issues that require substantial expenditures, changes in
our operations, or payments to clients or reporting to U.S. authorities; the results of our review of our billing practices, including additional amounts we may be required to reimburse clients, as well as potential consequences of such review,
including damage to our client relationships and adverse actions by governmental authorities; the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or civil or criminal
proceedings; changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose; the large institutional clients on which we focus are often able to exert
considerable market influence, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge, to potentially significant changes in our assets under custody and administration or our
assets under management in the event of the acquisition or loss of a client, in whole or in part, and to potentially significant changes in our fee revenue in the event a client re-balances or changes its investment approach or otherwise re-directs
assets to lower- or higher-fee asset classes; the potential for losses arising from our investments in sponsored investment funds; the possibility that our clients will incur substantial losses in investment pools for which we act as agent, and the
possibility of significant reductions in the liquidity or valuation of assets underlying those pools; our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment
products; the credit agency ratings of our debt and depositary obligations and investor and client perceptions of our financial strength; adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide
factors, or other reputational harm; our ability to control operational risks, data security breach risks and outsourcing risks, our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our
business and the possibility that our controls will prove insufficient, fail or be circumvented; our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information
technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems (including those of our third-party service providers) and their effective operation both independently
and with external systems, and complexities and costs of protecting the security of such systems and data; our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our
business goals and comply with regulatory requirements and expectations; changes or potential changes to the competitive environment, including changes due to regulatory and technological changes, the effects of industry consolidation and
perceptions of State Street as a suitable service provider or counterparty; our ability to complete acquisitions, joint ventures and divestitures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the
ability to satisfy closing conditions; the risks that our acquired businesses and joint ventures will not achieve their anticipated financial and operational benefits or will not be integrated successfully, or that the integration will take longer than
anticipated, that expected synergies will not be achieved or unexpected negative synergies or liabilities will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced,
and that disruptions from the transaction will harm our relationships with our clients, our employees or regulators; our ability to recognize evolving needs of our clients and to develop products that are responsive to such trends and profitable to us,
the performance of and demand for the products and services we offer, and the potential for new products and services to impose additional costs on us and expose us to increased operational risk; changes in accounting standards and practices;
and changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.
Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2016 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to
read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this presentation speak
only as of the date hereof, June 14, 2017, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.
Forward-looking statements
2
Industry trends favorable to State Street’s capabilities
State Street Global Advisors is the third largest asset manager in the world and well positioned
to meet investor demand
Strong global franchise, providing key services and solutions to institutional clients
Comprehensive suite of disciplined investment building blocks and solutions
Client-centric mission coupled with focused multi-year strategy will drive success
Financial results reflect improving growth and our momentum continues
Executive Summary
3
Disruptive environment…
• Traditional active decomposing
to highly precise index and
factor exposures plus high-
active-share strategies
• Mutual funds losing ground to
ETFs
• Scale plus replication key to
success
• Demand for outcomes requires
mass customization
capabilities
• “New active” based on
assembly of building block
exposures
• New skills key to successes:
– Asset allocation
– IT and big data
– Actuarial
• At scale global index provider
• Third-largest ETF player
• Leading factor and quantitative
capabilities
• Large, at scale multi-asset and
Outsourced CIO (OCIO)
provider
• Assembly is the new active
management – solutions such
as OCIO and target date funds
• Key leverage points between
SSGA and rest of State Street:
– Shared Asset Owner
clients
– Cash products
– Securities Finance and
Transition Management
– Potential for end-to-end
innovation
Defined Contribution
Expansion
Fee
Compression
Regulatory Pressure
Persists
Barbell Product
Mix Shift
Solutions Continue
to Grow
Strong ETF
Growth Globally
Retail & Distribution
Gain Power
Growth in
Alternatives
Defined Benefit
Shrinkage
Disruptive Technology
…poses challenges to
traditional asset managers…
…and plays to State Street’s
position and strengths
Industry trends favorable to State Street’s capabilities
4
Delivering new perspective and
insight into risk management and
investment strategy
Providing customized asset
servicing solutions that support
traditional and alternative
investments
Creating access to alpha,
insights, liquidity and financing by
enhancing portfolio values
Providing access to investment
strategies and insights that help
achieve financial objectives
State Street has a strong global franchise and are providing
key services and solutions to our institutional clients
• Proven experience, with approximately $2.6 trillion assets under management1 as of
March 31, 2017
• Access to a wide range of investment strategies across the risk/return spectrum
• With approximately $558 billion1 in global ETF assets under management, we have one of
the broadest ranges of ETFs in the industry
• Delivering investment research, foreign exchange (FX) trading and securities lending
• Providing liquidity across 36 international markets, with approximately $3.23 trillion in
lendable assets as of December 31, 2016
• $21.1 trillion in foreign exchange and interbank volume traded in 2016
• Assets under custody and administration of approximately $29.8 trillion as of
March 31, 2017
• One of the world’s leading investment service providers
• Fund accounting and administration, custody, investment operations outsourcing,
recordkeeping, performance and analytics, and transfer agency services
• Integrated solutions across the lifecycle of trades
• Aligning research and advisory, portfolio performance and risk analytics, information and
data management to deliver innovation
• Customized and flexible multi-asset class products and services
Refer to the Appendix included with this presentation for footnotes.
5
• 14 product
domiciles
• 63 countries with
clients
• 24-hour global
trading capability
State Street Global Advisors is the third largest asset manager
in the world and well positioned to meet investor demand
Assets Under Management (AUM) & Mgmt Fee Trend1 Key 1Q17 Highlights1
By the
Numbers
(March 31, 2017)
At scale
across
Asset
Classes
Investment
Performance
$2,561 Billion2 AUM as of 1Q17
Passive:
• 99% of AUM within tracking error
Active:
• 73% of AUM outperformed benchmarks over
3 & 5 year weighted avg4
381 380 351 333 335
443 452 478 521 558
1,472 1,469 1,617 1,614
1,668
382361368
293270
2,468
3Q16
2,446
2Q16 1Q17
2,561
4Q16
2,301
1Q16
2,296
ETF AUM Institutional AUM Management Fees Cash AUM
% Growth
vs. 1Q16
(12%)
+26%
+13%
Asset Class AUM ($ billions)
Passive Equity $1,482
Cash 335
Passive Fixed Income 312
Multi-Asset Class Solutions 3 132
Currency 79
Active Equity 77
Alternatives 75
Active Fixed Income 69
+41%
+12%
Strong
Market
Share in
Key
Segments5
Key Segments Rank #
Global ETF6 3
Index Managers, excl. ETFs7 3
Endowment & Foundation 1
US Defined Benefit 2
US Defined Contribution
Investment Only (DCIO)8 4
Outsourced CIO9 5
Worldwide Central Bank 1
Worldwide Sovereign Wealth 1
• 2,700+ clients
• 2,600+ employees
• #3 global asset
manager5
• 11 investment centers
Refer to the Appendix included with this presentation for footnotes.
Acquisition of the GE
Asset Mgmt Operations
2
($ millions) ($ billions) ($ billions) ($ billions)
6
Comprehensive suite of disciplined investment building blocks
and solutions
Outsourced CIO
Systematic /
Quantitative
• Equity
• Fixed Income
• Credit
• Rates
• Real Assets
• Currency
• Cash
• Cash
• Ultra-Short
Bonds
• Low
Duration
Bonds
Environmental, Social and Governance
INDEX ACTIVE LIQUIDITY MULTI-ASSET
• Tactical asset
allocation
• Real Assets
• Overlay/Exposure
Management
• Liability Driven
Investment
• Multi-Sector Equity
• Multi-Sector Fixed
Income
• Target Date Funds
Alternatives Fundamental
Asset Allocation & Portfolio Solutions Management
• Private Equity
• Real Estate
• Hedge Funds
• Commodities
• Risk Premia
• Equity
• Fixed
Income
• Smart Beta
• Enhanced
• Equity
• Currency
7
SSGA BEACON CLIENT INVESTMENTS ETFs
Strengthen our leadership
position in beta and grow
our solutions, factor-based
and select fundamental
capabilities
Deepen our impact and
penetration with clients and
other stakeholders
Transform SSGA’s talent,
operating model, and culture
Grow our ETF business
globally
Mission: Invest responsibly to enable economic prosperity and social progress
• Increase US Intermediary
productivity and effectiveness
• Expand Europe and
Institutional
• Strengthen fixed income
• Further develop Model
portfolio capabilities
• Improve Global Institutional
Index margins
• Expand OCIO
• Launch new Alternative
products
• New Defined Contribution
products
• Commercialize select GEAM
Fundamental Equities
• ESG product development
• Increase Global Cash
proprietary capture rate
• Reimagine our global operating
model
• Drive cycle time down for major
business transactions
• Enhance the digital experience
for clients and employees
• Modernize and simplify
technology infrastructure
• Innovate on analytics and new
technologies
Client-centric mission coupled with focused multi-year strategy
will drive success
• Distribution model for the
future
• Drive Index and priority Active
capabilities
• Geographic expansion in Asia
• Refine value proposition,
thought leadership, and brand
8 Highly Confidential
Assets Under
Management2
(AUM)
($B)
5 Quarter Trend1 Trend Highlights1
• AUM: AUM upward trend of
+12% year-over-year [+6%,
excluding $120 billion of GEAM-
related AUM at 3/31/17] driven by
favorable equity market
movement, GEAM acquisition,
and strong ETF inflows
• Management Fee: Management
fee growth of +41% year-over-
year [+15%, excluding $71
million of GEAM-related
management fees for 1Q17]
primarily driven by equity market
favorability, GEAM pension plan
assets, and strong ETF flows
• Pre-Tax Income: 1Q17 Pre-tax
income improved vs. 1Q16 by
144% [+89%, excluding $18
million of GEAM-related pre-tax
income for 1Q17]. Margin
improvement driven by fee
revenue growth, seed capital
gains and expense control
• Fee Realization4: Trend of
increased fee realization of +1.3
bps (1Q17 vs. 1Q16) primarily
driven by 3Q16 acquisition of the
GE Asset Mgmt operations [+0.4
bps, excluding +0.9 bps
attributable to GEAM business]
Management
Fees
($M)
Pre-Tax
Income
($M)
1Q16 2Q16 3Q16 4Q16 1Q17
Pre-Tax
Margin (%) 11.1% 19.2% 16.8% -12.6%
3 19.2%
Effective Bps4 4.7bps 5.1bps 6.0bps 5.9bps 6.0bps
2,561
2,4682,446
2,3012,296
1Q17 vs. 1Q16
+12%
+41%
Financial results reflect strong growth and improving trends
382
361368
293
270
+144%
78
6458
32
-45
3
Refer to the Appendix included with this presentation for footnotes.
9
Strong ETF inflows, record 1Q17 in EMEA
Active Asset Stewardship agenda and Fearless Girl
Factor-based investing wins in all three regions
Key OCIO wins
GE Asset Management acquisition excluding merger and
integration costs, accretive GAAP-basis earnings in
nine months
Margin improvements trending
State Street Global Advisors’ momentum continues
Sculpture by Kristen Visbal and commissioned by
State Street Global Advisors.
Photo by Federica Valabrega.
10
Questions
and
Answers
State Street Global Advisors
Overview and Strategic Priorities
Morgan Stanley Annual Financial Services Conference
Ron O’Hanley
Vice Chairman of State Street Corporation and
President & CEO of State Street Global Advisors
Wednesday, June 14, 2017
11
Appendix
Track Record of Innovation 12
Slide Footnotes 13
12
‒ GE Asset Management
acquired
‒ Fearless Girl statue placed in
NYC financial district; firm
calls on companies to
increase female board
members
‒ First proprietary Index – the
SSGA Gender Diversity Index
‒ Bank of Ireland Asset
Management acquired
‒ Partnership with DoubleLine
Capital to launch TOTL, an
active fixed income ETF
raising $1B in in first six
months
‒ First S&P 500 fossil-fuel-free
ETF in partnership with the
U.S. Natural Resources
Defense Council
‒ UK defined contribution
target date funds launched
(Timewise Target Retirement
Funds)
‒ First actively managed senior
loan ETF in partnership with
Blackstone/GSO
‒ Custom portfolio solutions
team established
‒ State Street Global
Advisors established
‒ First non-US fund
‒ Active quantitative
strategy team established
‒ World’s first ever ETF –
SPY – launched in
partnership with the
American Stock
Exchange
‒ First ever Asia ex-Japan
ETF (Hong Kong Tracker
Fund)
‒ First family of sector ETFs
‒ Pioneers multi-asset
class, LDI strategies
‒ First-gold backed ETF in
partnership with
World Gold Council
‒ Asia’s first regional Fixed
Income ETF the ABF Pan
Asia Bond Index Fund
(PAIF)
‒ First local Chinese ETF in
partnership with China
Asset Management
‒ First local ETF in Taiwan
‒ First local ETF in
Singapore
‒ First ETF in Australia
‒ Managed volatility
strategies launched
‒ Team established to
serve Official Institutions
Track record of innovation, positions firm well in today’s
environment
1970 -1990s 2000s 2010s
Numerous Industry Awards, including:
– Institutional Investor, Global Core Equity Manager of
the Year
– Chief Investment Officer, Responsible Investing Award
– Pension & Investments, DC Investment Provider of the
Year
– The Journal of Index Investing, ETF Product and
Innovation of the Year
– The Journal of Index Investing, Indexing Innovation of
the Year
– Inside ETFs, Best New ETF
– Central Banking, Asset Manager of the Year Two
Years in a Row
– GlobalCapital, Americas Derivatives Asset Manager of
the Year
– UK Pensions Awards, DC Investment Manager of the
Year
1970s
1980s
1990s
Decade of Achievements
13
Slide Footnotes
1 As of quarter-end, where applicable.
2 AUM reflects approx. $33.33 billion (as of March 31, 2017) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; State Street Global
Markets and State Street Global Advisors are affiliated.
3 Investment Solutions AUM inclusive of assets presented in all asset classes of $274.3 billion as of March 31, 2017.
4 3-year performance weighted 65% ended March 31, 2017 and 5-year performance weighted 35% ended March 31, 2017. Does not include Private Equity, Hedge Funds, or Real
Estate.
5 Source: Pensions and Investments Research Center as of December 31, 2016, unless footnoted below:
6 Source: Morningstar as of February 28, 2017.
7 Source: Pensions and Investments Research Center Data as of June 30, 2016.
8 Source: Planadviser DCIO Managers by Assets for Q1 2016 as of June 2016.
9 Source: Investing Outsourcing/Fiduciary Management Mandates as of December 31, 2016 from Pensions & Investments.
Footnotes to slide 5:
1 Data presented in the graphs include the effects of the GEAM business acquired on July 1, 2016. As the GEAM acquisition is reasonably recent, State Street believes it is useful
to investors to understand certain trends both including and excluding the effects of the GEAM business. See “Trend Highlights” on this slide 8 for more details.
2 As of quarter-end, where applicable.
3 Pre-tax income for 4Q16 included approximately $92 million of accelerated compensation expense associated with certain cash settled deferred incentive compensation awards.
Excluding this amount, pre-tax income for 4Q16 was approximately $47 million and pre-tax % was 13.2%.
4 Fee realization / effective basis point calculation based on AUM balance and estimated annualized revenue as of end of period.
Footnote to slide 8:
1 AUM reflects approx. $33.33 billion (as of March 31, 2017) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; State Street Global
Markets and State Street Global Advisors are affiliated.
Footnotes to slide 4: