London – 11 October 2006 – WM Performance Services, one of the world’s leading investment performance measurement businesses and the European performance measurement division of State Street Corporation (NYSE: STT), today released its preliminary Charity Fund results for the third quarter of 2006. WM’s charity fund survey is the largest and longest-running study of UK charity fund performance and covers more than two-thirds of the UK charity fund market.

According to the survey, charity funds enjoyed a good third quarter, gaining 3.5 percent as equity and bond market values more than recovered the losses suffered during the second quarter. For the year to-date, the average charity fund has achieved a return of just over 7 percent, and for the last 12 months the return is 12.1 percent; the return for the last three years, the most typical performance assessment period, is 15.3 percent per annum. This represents a real return (i.e. return in excess of retail price inflation) in the last three years of around 12 percent per annum for the average charity.

“The markets recovered their composure as concerns about world economies and rising inflation were viewed by market commentators as being overdone,” said Jeanette Patrizio , head of WM Performance Services . “Corporate profitability and strong cash balances continue to underpin market values, and Charity Funds are well placed for good full-year returns in 2006, albeit not quite as good as what they saw in 2005.”

During the quarter, the highest equity returns were recorded in Europe (5.6 percent) and North America (4.3 percent) even though a weakening Euro and dollar took back almost 2 and 1 percent respectively for a sterling investor. UK Equities increased by 3.6 percent; Japan gained 2.4 percent in local currency terms, but the weak yen resulted in losses of 1.8 percent for a sterling investor.

Bonds, UK Government, corporate and index linked all increased between 2.5 and 4 percent in the quarter. Long-dated bonds and Index Linked securities produced the highest returns within the fixed income category. Cash posted a positive return of 1.2 percent, while Property remained a strong performer at 3.5 percent.

There was no difference in performance for the quarter between charity funds constrained by an income requirement and those which have no such constraints due to equity and bond returns being in similar territory. However, funds with an income constraint have benefited over the last 12 months from their superior performance in UK Equities.

Notes to Editors

WM Performance Services is one of the world's leading investment performance measurement businesses and is the European performance measurement division of State Street Corporation. Based in Edinburgh, London, Amsterdam, Paris, Frankfurt and Zurich, WM measures more than 5,000 investment portfolios based in the key global investment centres and provides an extensive range of services to support better investment decisions.

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 $10.9 trillion in assets under custody and $1.5 trillion in assets under management (as at 30 June 2006), State Street operates in 26 countries and more than 100 markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.