US Assets in International Markets Top $ 1 Trillion

April 1, 2005 (PLANSPONSOR.com) - US tax-exempt assets in cross-border mandates have topped $1 trillion for the first time ever.

Such investments now have $1,035 billion in them ,according to InterSec Research Corp., a figure that includes $921 billion in non-US equities. InterSec said that strong returns in both international equities and fixed income markets, plus large infusions from plan sponsors, helped the market top $1 trillion.

“A continued weak dollar also contributed to the strong returns which, in part, contributed to the increased investment levels” commented Richard Qiu, InterSec’s Head of Research, in a press release. “In many cases, pension plans did not rebalance assets to the lower performing domestic asset classes, in effect increasing their allocations to international. This indicates a strong commitment to the asset class by US institutional investors.”

InterSec ( www.InterSecResearch.com ), a State Street business, is a consultant to the global asset management industry.

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