State Street Investment Analytics Announces Master Trusts Universe Results for Third Quarter 2012
October 31 2012 - 11:44AM
Business Wire
State Street Corporation (NYSE: STT), today announced that the
median return of the State Street Universe (SSU) of total plans
gained 4.5 percent in the third quarter 2012. For the year ended
September 30, 2012, the universe rose 15.8 percent. The SSU
consists of a diverse range of funds custodied at State Street and
funds provided by the Independent Consultants Cooperative (ICC). It
includes approximately 900 total plans of a wide range of plan
sponsors and the individual funds that comprise each plan. The
18,000 portfolios in the State Street Universe constitute a
combined asset value of more than $2.3 trillion.
In the third quarter, total plans less than $1 billion edged out
larger plans gaining 4.6 percent versus 4.5 percent, but for the
year ended September 30, 2012 they outperformed larger plans by 0.3
percent rising 16.1 percent versus 15.8 percent. Corporate plans
continued to outpace other plan types. They earned 5.0 percent in
the third quarter and 17.4 percent for the year ending September
30, 2012. They also led the other plan types in the three- and five
year periods, returning 9.5 percent and 2.8 percent, respectively.
Endowments & Foundations lagged behind other plan types over
the same periods. They gained 4.5 percent in third quarter
(slightly below Public Funds) and 15.2 percent in the year ending
September 30, 2012.
The State Street Universe (SSU)
Periods Ending September 30,
2012
Median Return
Universe Name
One Quarter
One Year
Three Years
Five Years
Master Trust Funds 4.5
15.8 8.9
2.5 Master Trust Funds > $1 Billion
4.5 15.2
9.4 2.2 Master Trusts
< $1 Billion 4.6
16.1 8.9
2.7 Corporate Plans (DB)
5.0 17.4
9.5 2.8 Endowments & Foundations
4.5 15.2
8.9 2.2
Public Funds (DB) 4.6
16.4 9.2
2.4 Taft Hartley Plans (DB)
4.7 17.1
9.2 2.4
International and global equity and fixed income funds
outperformed their US funds counterparts in the third quarter.
International emerging market funds had the highest returns, rising
7.4 percent, but did not wipe out their second quarter loss of 8.0
percent, while international developed market funds gained 7.2
percent. US equity funds were up 6.2 percent. For the year ended
September 30, 2012, US equity funds’ strong performance of 30.1
percent was more than 10 percent higher than international funds.
International emerging market funds rose 17.6 percent and
international developed market funds were up 16.2 percent. Over the
last three and five years, US equity funds also outperformed
international funds, posting a strong 13.3 percent return for the
three year period – more than double the return of international
funds – and a gain of 2.1 percent for five years versus losses for
the international funds. Global fixed income funds outperformed US
fixed income funds in both the third quarter and the year ending
September 30, 2012. They earned 4.2 percent in the third quarter
versus 2.5 percent for US fixed income funds, and 10.3 percent
versus 8.8 percent for the year.
“US equity funds in the top quartile of the universe in the
third quarter had a larger market capitalization, higher earnings
per share growth rates and payout ratios and lower P/E ratios than
those in the bottom quartile,” said Paula Gehr, vice president of
State Street Investment Analytics. “We saw representation of all
equity styles in both the top and bottom quartiles, although very
few small value funds made it into the top quartile.”
Characteristics of funds in the top quartile for the full year
ending September 30, 2012 were nearly a mirror image: Top quartile
funds had a smaller market capitalization, lower earnings per share
growth rates and payout ratios but similar P/E ratios to those in
the bottom quartile.
The State Street Universe (SSU)
Periods Ending September 30,
2012
Median Return
Universe Name
One Quarter
One Year
Three Years
Five Years
US Equity Funds 6.2
30.1 13.3
2.1 Global Equity Funds
6.9 19.8
17.7 -1.6 Intl Equity Funds – Developed
Mkts 7.2
16.2 4.3
-3.1 Intl Equity Funds – Emerging Mkts
7.4 17.6
6.1 -1.2 US Fixed Income Funds
2.5 8.8
7.9 7.5 Global
Fixed Income Funds 4.2
10.3 7.8
7.9 Hedge Funds 2.6
5.6 5.4
1.3
State Street Investment Analytics (SSIA) provides performance
and analytics services and employs a team of more of 700 dedicated
investment performance professionals across 18 offices worldwide.
SSIA services approximately 1,400 clients with asset volumes
exceeding $11 trillion, offering comprehensive services in
performance, risk, compliance and strategic analysis that help them
monitor and measure the success of their investment strategies in
any market and in any asset class, including alternative
investments.
The Independent Consultants Cooperative is a consortium of
independent investment consulting firms that deliver superior
value-added products to their clients. The ICC is currently
comprised of eleven well-established firms located across the
country that collectively consult to 10% of the industry’s
institutional assets. In order to avoid conflicts of interest, none
of the ICC member firms offers investment management services.
Rather, the ICC focuses solely on the continuous refinement of
investment consulting products, systems and diagnostic databases
for the collective benefit of their clientele. For more information
about the Independent Consultants Cooperative and its member firms,
visit the web site at www.icc-group.com
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 $23.4 trillion in assets
under custody and administration and $2.1 trillion* in assets under
management at September 30, 2012, State Street operates in 26
countries and more than 100 geographic markets worldwide. For more
information, visit State Street’s website at
www.statestreet.com
*This AUM includes the assets of the SPDR Gold Trust (approx.
$75.3 billion as of September 30, 2012), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors
serves as the marketing agent.
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