State Street Investment Analytics Announces Master Trusts Universe Results for Third Quarter 2012

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State Street Investment Analytics Announces Master Trusts Universe Results for Third Quarter 2012

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYS: 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 (NYS: 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.



State Street Corporation
Marie McGehee, +1 617-664-1898

KEYWORDS:   United States  North America  Massachusetts

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