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Press Releases
5/11/07 - U.S. Trust plans start 2007 in positive territory
MELLON ANALYTICAL SOLUTIONS REPORT SHOWS THAT
U.S. TRUST PLANS START 2007 IN POSITIVE TERRITORY
PITTSBURGH, May 11, 2007 — The median plan for the 439 corporate, foundation, endowment, public, Taft-Hartley and healthcare funds that make up the Mellon
Analytical Solutions U.S. Master Trust Universe posted a combined 2.18% return for the first quarter. Of the plans in the universe, 99% showed positive
results for the quarter, with 83% matching or outperforming the universe’s composite benchmark (Russell 3000® Index* 50%, Lehman Brothers® Aggregate 40%,
MSCI® All Country World Index ex US 10%). The U.S. Master Trust Universe represents a market value of $1.3 trillion with an average plan size of $3.0
billion.
“During the first quarter there was little difference between the performance of various fund types with just 70 basis points separating the highest
(endowments 2.73%) and lowest (healthcare 2.03%). Disparity widens over a 12-month period however, with a spread of 270 basis points and public funds leading
the charge,” said Greg Stewart, director of product management and investor performance for Mellon Analytical Solutions. “The lower allocation to U.S. Fixed
Income (which was one of the lower performing asset classes during the first quarter) and greater allocation to alternatives were the primary reasons for the
marginally stronger returns for endowments. Over the 12-month period, greater relative exposure of public funds to Non-U.S. Equities, compared to other fund
types, has been beneficial to performance.”
Non-U.S. Equities led all asset classes for the quarter with a median return of 3.93%, ahead of the MSCI® All Country World Index ex US return of 3.83%.
U.S. Equities returned 1.67%, outperforming the Russell 3000® Index return of 1.28%. U.S. Fixed Income generated a median result of 1.62%, versus the Lehman
Brothers® Aggregate return of 1.50%. Non-U.S. Fixed Income posted a median result of 1.39%, compared to the Citigroup® Non-US Dollar World Government Bond
Index return of 1.09%.
Endowments were the top performing plan type for the first quarter with a 2.73% median return, followed by public, foundations, Taft-Hartley, corporate
and healthcare.
The average asset allocation in the U.S. Master Trust Universe for the first quarter was: U.S. Equity 38%, U.S. Fixed Income 23%, Non-U.S. Equity 21%,
Non-U.S. Fixed Income 1%, Alternative Investments 6%, 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 3,300 institutional investors in
31 countries and is responsible for $7.8 trillion in assets under measurement. Mellon Analytical Solutions’ professional staff consists of more than 500
employees operating in 12 cities in six countries. Information about Mellon Analytical Solutions is available at 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, wealth management, asset servicing, issuer
services and treasury services. Mellon has approximately $5.8 trillion in assets under management, administration or custody, including $1.034 trillion under
management. News and other information about Mellon is available at www.mellon.com/mas.
Mellon Analytical Solutions Trust Universes Median Plan Returns
| Period Ending March 31, 2007
| | Universe | Number of Participants | 1Q2007 | One-Year | Five-Years |
10-Years
| | Master Trust Total Fund | 439 | 2.18 | 11.07 | 9.25 | 9.19
| | Corporate Plans | 230 | 2.06 | 10.87 | 8.94 | 8.99
| | Foundations | 65 | 2.24 | 11.16 | 9.56 | 9.92
| | Endowments | 62 | 2.73 | 12.90 | 10.30 | 9.60
| | Public Plans | 52 | 2.46 | 11.77 | 9.92 | 9.41
| | Taft-Hartley Plans | 13 | 2.24 | 10.71 | 8.94 | NA
| | Healthcare Plans | 16 | 2.03 | 9.07 | 7.64 | 7.45
| | Universe Benchmark: Russell 3000® Index 50%, Lehman Brothers® Aggregate 40%, MSCI® All Country World Index ex US, 10%) | 1.66
| 10.29 | 7.63 | 8.17
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