The median return of the State Street Universe (SSU) of total plans rose 3.5 per cent in the first quarter of 2011, according to figures released by State Street Corporation.
For the year ended March 31, 2011, the universe earned 12.7 per cent. The SSU consists of a diverse range of funds custodied at State Street and funds provided by the Independent Consultants Cooperative (ICC). It includes the total plans of a wide range of plan sponsors and the individual funds that comprise each plan. The 19,000 portfolios in the State Street Universe constitute a combined asset value over USD2 trillion.
In the first quarter, Taft Hartley Plans and Public Funds had the highest returns in the quarter, up 3.9 per cent. For the 12 months ending March 31, 2011, master trust funds of greater than USD1 billion returned 13.4 per cent, a full percentage point higher than smaller master trust funds, which returned 12.4 per cent. Taft Hartley Plans were up 14.0 per cent, with the highest returns for the year. Endowments & Foundations trailed behind the other funds, rising 12.7 per cent.
“For the past two quarters, US Equity Funds have significantly outpaced International Developed and Emerging Market Funds,” says William Pryor, senior vice president and head of State Street Investment Analytics. “Small and Mid Cap Growth Funds led the way among US Equity Funds with Small Growth Funds growing 28.1 per cent and Mid Cap Growth Funds growing 25.2 per cent over the same time period.”
US Equity Funds posted the strongest gains in the first quarter, rising 6.6 per cent, while International Emerging Market Equity funds had the smallest return, rising 0.9 per cent. For the year ending March 31, 2011, US Equity Funds rose 18.9 per cent, followed by International Emerging Market Equity funds which gained 17.9 per cent. Other types of equity funds also showed gains: International Developed Market Equity Funds rose 13.2 per cent and Global Equity Funds rose 14.3 per cent. Fixed Income Funds posted small gains in the first quarter. Over the last 12 months, Global Fixed Income Funds returned 8.7 per cent and US Fixed Income Funds 7.0 per cent.