Master Trusts Post Gain in Q110

May 4, 2010 ( - State Street Corporation announced that the median return of its universe of total plans rose 3.4% in the first quarter of 2010, in line with the 3.1% gain in the fourth quarter of 2009.

For the year ended March 31, 2010, the universe earned 30%, according to a press release. Master trust funds of less than $1 billion returned 30.8%, slightly higher than larger master trust funds, which returned 29%. Corporate Plans were up 32.6%, with the highest returns for the year ending March 31, 2010, while Taft Hartley and Public Funds gained only 30.3% and 30.4%, respectively.   

For the quarter, plan results all fell within a narrow range.  

U.S. Equity Funds rose 6.1% in the first quarter, leading other types of funds. For the year ending March 31, 2010, International Emerging Market Equity funds rebounded sharply, rising 82% after plummeting 48.4% in the prior year, State Street said.   

Other types of equity funds also showed strong performance: International Developed Market Equity Funds rose 54.7%, Global Equity Funds rose 54%, and U.S. Equity Funds rose 53.6%. Fixed Income Funds also did well over the last 12 months, with Global Fixed Income Funds up 20.8% and U.S. Fixed Income Funds gaining 14.1%.  

Final results for Private Equity and Real Estate Funds were reported with Real Estate Funds losing 28.6% and Private Equity Funds losing 5.7% as of December 31, 2009. For the fourth quarter 2009, Private Equity funds earned 2.6% while Real Estate Funds lost 2.4%.  

The State Street Universe (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 approximately 20,000 portfolios in the State Street Universe constitute a combined asset value exceeding $2 trillion.