Investing February 8, 2006

Mellon Master Trust Universe Up More than 7% in '05

February 8, 2006 (PLANSPONSOR.com) - The median return for the 499 corporate, foundation, endowment, public, Taft-Hartley, and health care funds that make up the US Master Trust Universe for Mellon Analytical Solutions was 7.69% for the year ended December 2005.
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In its news release, Mellon said the median return for the fourth quarter was 2.28%.   Of the 499 plans in the universe, 498 showed positive results for the quarter and 80% outperformed the universe’s composite benchmark (Russell 3000 Index 50%, Lehman Brothers Aggregate 40%, MSCI World ex-US 10%).

Non-US Equities led all asset classes for the quarter with a median return of 4.68%, slightly ahead of the MSCI AC W XUS Index return of 4.39%. US Equities generated a return of 2.28%, ahead of the Russell 3000 Index return of 2.04%, according to Mellon. 

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US Fixed Income posted a median result of 0.61%, versus the Lehman Brothers Aggregate return of 0.59%.  Non-US Fixed Income was the only asset class without a gain, showing a return of -0.19%, still outperforming the Citigroup World Government Non-US return of -2.61%.

Endowment plans were the top performing plan type for both the fourth quarter and the year, gaining 2.60% and 9.53%, respectively.  

The average asset allocation in the US Master Trust Universe for the fourth quarter was:

  • US Equity – 42%,
  • US Fixed Income – 24%,
  • Non-US Equity – 20%,
  • Non-US Fixed Income – 1%,
  • Alternative Investments – 6%,
  • Real Estate – 2%,
  • Cash – 1%, and
  • Other (Private Equity, Oil, Gas, etc.) – 4%.

The US Master Trust Universe represents a market value of $1.4 trillion with an average plan size of $2.8 billion.   Additional information can be found at  www.mellon.com .

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