Investment Returns Up in Q4 2001

February 26, 2002 ( - Investment returns for every investment category increased significantly in the final three months of 2001, compared to the previous quarter, according to the Security Trust Company (STC) Quarterly Defined Contribution Investment Returns Index.

The STC Index is a quarterly analysis of investment returns on selected
participant-directed defined contribution plans for which STC provides trustee and custodial services.

It measures the return on investment in mutual funds, separately managed accounts, and individually directed brokerage accounts (IDAs).

According to STC, over the final quarter of 2001:

  • core option mutual funds in the index posted a 11.16% return, compared to a -11.93% return the previous quarter
  • separately managed accounts returned 6.7% return, versus the previous quarters return of -6.6%
  • IDAs increased by 11.95% over the period, compared to a drop of 9.71% in the previous quarter.

The sample for the fourth-quarter index comprised 630 plans totaling approximately $5.82 billion in assets. 

These included 2,200 IDAs and 150 separately managed accounts. The average IDA account balance was $200,000, and the average managed account balance was $13,300,000, according to STC.