Mellon Analytical Solutions Report Shows that Strong Equity Performance Boosted U.S. Trust Plans Returns in 2006
08 February 2007 - 10:50PM
PR Newswire (US)
PITTSBURGH, Feb. 8 /PRNewswire-FirstCall/ -- The median plan for
the 434 corporate, foundation, endowment, public, Taft-Hartley and
healthcare funds that make up the Mellon Analytical Solutions U.S.
Master Trust Universe posted a combined 5.81% return for the fourth
quarter. All of the plans in the universe showed positive results
for the quarter, with 82% matching or outperforming the universe's
composite benchmark (Russell 3000(R) Index* 50%, Lehman Brothers(R)
Aggregate 40%, MSCI(R) World ex-U.S. 10%). This marks the
universe's strongest full-year performance since 2003 and
represents the fifth consecutive year of positive results. The U.S.
Master Trust Universe represents a market value of $1.2 trillion
with an average plan size of $3.4 billion. "2006 was the year of
the equity, with both domestic and international markets posting
strong returns - significantly outperforming fixed income," said
Greg Stewart, director of product management, investor performance.
"Of particular notice was the return experienced in non-U.S.
Equity, with an asset class median result of nearly 26% for the
year. A combination of strong local market performance, in addition
to the weakening U.S. dollar during the quarter, resulted in
favorable returns for U.S. investors." Non-U.S. Equities, which led
all asset classes for the quarter with a median return of 10.70%,
lagged the MSCI(R) AC W XUS Index return of 11.21%. U.S. Equities
generated a return of 7.03%, slightly behind the Russell 3000(R)
Index return of 7.12%. U.S. Fixed Income generated a median result
of 1.28%, versus the Lehman Brothers(R) Aggregate return of 1.24%.
Non-U.S. Fixed Income posted a median result of 2.89%, ahead of the
Citigroup(R) Non-US Dollar World Government Bond Index return of
2.09%. Endowments were the top performing plan type for the fourth
quarter with a 6.24% median return, followed by foundations,
public, corporate, Taft-Hartley, and healthcare. The average asset
allocation in the U.S. Master Trust Universe for the fourth quarter
was: U.S. Equity 38%, U.S. Fixed Income 23%, Non-U.S. Equity 20%,
Non-U.S. Fixed Income 1%, Alternative Investments 7%, Real Estate
2%, Cash 1%, and Other (Private Equity, Oil, Gas, etc.) 8%. Mellon
Analytical Solutions provides performance measurement, attribution
and investment analysis services to more than 3,100 institutional
investors in 25 countries and is responsible for $6.8 trillion in
assets under measurement. Mellon Analytical Solutions' professional
staff consists of more than 600 employees operating in 12 cities in
five countries. Information about Mellon Analytical Solutions is
available at http://www.mellon.com/mas. Mellon Financial
Corporation is a global financial services company. Headquartered
in Pittsburgh, Mellon is one of the world's leading providers of
financial services for institutions, corporations and high net
worth individuals, providing asset management, private wealth
management, asset servicing and payment solutions and investor
services. Mellon has approximately $5.5 trillion in assets under
management, administration or custody, including $995 billion under
management. News and other information about Mellon is available at
http://www.mellon.com/. Mellon Analytical Solutions Trust Universes
Median Plan Returns Period Ending December 31, 2006 Universe Number
of 4Q2006 One-Year Five-Years 10-Years Participants Master Trust
Total Fund 434 5.81 13.61 9.01 8.93 Corporate Plans 234 5.72 13.23
8.74 8.80 Foundations 65 6.11 13.61 9.27 9.85 Endowments 59 6.24
14.91 9.88 9.19 Public Plans 47 5.8 14.33 9.70 8.88 Taft-Hartley
Plans 16 5.56 12.25 8.37 8.63 Healthcare Plans 19 4.49 10.18 7.05
7.21 Universe Benchmark: Russell 3000(R) Index 50%, Lehman
Brothers(R) Aggregate 40%, MSCI(R) World ex-U.S., 10%) 5.04 12.08
7.41 8.01 *Russell Investment Group is the owner of the trademarks,
service marks, and copyrights related to its indexes. DATASOURCE:
Mellon Financial Corporation CONTACT: Jessica Hancock of Mellon
Financial Corporation, +1-617-722-6854, Web site:
http://www.mellon.com/ http://www.mellon.com/mas
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