State Street Master Trust Universe Sees Loss in Q2 2010

July 27, 2010 ( - State Street Corporation reported that the median return of the State Street Universe (SSU) of total plans fell 4.4% in the second quarter of 2010, versus a 3.4% gain in the prior quarter.

For the year ended June 30, 2010, the plans earned 13.1%.  

In the second quarter, master trust funds of greater than $1 billion fell 4%, losing less than smaller master trust funds, which fell 4.4%. Corporate plans lost 4.6%, endowments and foundations lost 4.5%, public plans were down 4.9%, and Taft Hartley plans lost 4.7%.  

For the year ended June 30, 2010, corporate plans were up 14.3%, with the highest returns for the year ending June 30, 2010, while public funds gained the least, rising 12.7%.  

According to State Street, U.S. Equity Funds fell 10.8% in the second quarter, trailing International Emerging Market Funds, but less than International Developed Market Equity Funds which lost 12.3%. Although International Emerging Market Equity funds fell 8.4% in the second quarter, on a year-over-year basis they rebounded sharply, rising 23.3% in the last 12 months after plummeting 28.0% in the prior year.   

For the year ending June 30, 2010, U.S. Equity Funds also showed strong gains, up 16.6%. Fixed Income Funds also did well over the last 12 months, with Global Fixed Income Funds up 11.0% and U.S. Fixed Income Funds rising 12.4%.  

The SSU consists of a 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 of more than $2 trillion.