State Street universe returns slip for quarter, rise for 12 months

The State Street master trust universe of retirement plans, foundations and endowments had a median return of -1.6% in the second quarter but was up 1.2% for the 12 months ended June 30.

Fixed income was the only asset class with positive returns in the second quarter. U.S. fixed income had the highest median return for the quarter, at 2%, while global fixed income came next with a median return of 1%, according to a news release from State Street Corp. (STT)

Hedge funds returned a median -0.8%, followed by U.S. equity at -4%; global equity, -5.5%; international developed equity, -5.5%; and emerging markets equity, -6.9%.

U.S. fixed income also led the way for the year ended June 30, with a median return of 7.2%, followed by global fixed income at 4.2%. U.S. equity returned a median 0.6% for the 12 months; hedge funds, -1%; global equity, -6.6%; international developed markets equity, -13%; and emerging markets equity, -15.2%.

Corporate defined benefit plans had the best median return for the latest quarter, at -1.6%, followed by endowments and foundations at -1.8%; public DB funds, -1.9%; and Taft-Hartley plans, -2%.

For the year ended June 30, corporate DB plans led the way as well, with a median return of 2%. Public DB plans returned a median 1%; Taft-Hartley plans, 0.6%; and endowments and foundations, 0.5%.

The State Street universe of retirement plans, foundations and endowments consists of 21,000 portfolios with a combined asset value of $2.2 trillion.

— Contact Rob Kozlowski at rkozlowski@pionline.com | @Kozlowski_PI