ICC Universe Shows Median U.S. Fund Sponsor Lost 1.0% in the Second Quarter of 2006.BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- The Independent Consultants Cooperative (ICC ICC See: International Chamber of Commerce , web site: www.icc-group.com), a consortium of independent investment consulting firms Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that collectively consults to over 10% of the institutional assets in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , announced today the second quarter returns in their universe of actual accounts. The universe, which is the largest and most robust institutional investment performance database, includes 21,000 portfolios in all asset classes, with an aggregate market value of $1.7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . The portfolios are sponsored by a diverse range of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1400 institutional plan sponsors. For the second quarter of 2006, the median master trust in the ICC Universe declined by 1.0%, and 90% of master trusts earned negative returns. Public Funds See Fund, 3. See also: Public experienced the highest median return among the various sponsor type universes of -0.9% for the quarter, only 30 basis points higher than the lowest median return of -1.2% for Endowments and Foundations.
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Representative Master Trust Universes:
Median Performance as of June 30, 2006
2nd Quarter 1 Year 3 Years 5 Years
Public Funds (0.9%) 9.3% 11.3% 6.3%
Corporate (1.1%) 10.1% 11.8% 6.5%
Endowments & Foundations (1.2%) 10.1% 11.9% 6.4%
Taft Hartley (1.0%) 9.0% 10.9% 6.4%
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Asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. helps explain the relative returns of the different types of sponsors. Reversing the trend of recent periods, Public Fund and Taft Hartley median portfolios within the ICC Universe outperformed the median Corporate Pension and Endowment A transfer, generally as a gift, of money or property to an institution for a particular purpose. The bestowal of money as a permanent fund, the income of which is to be used for the benefit of a charity, college, or other institution. & Foundation account returns for the second quarter. The relatively higher median returns for the second quarter among Public Funds and Taft Hartley pensions may be explained by higher average allocations to fixed income and large cap equity, and lower allocations to small cap equity. Within asset class mandates mandates, system of trusteeships established by Article 22 of the Covenant of the League of Nations for the administration of former Turkish territories and of former German colonies. , the largest decline in median portfolios was registered by International Emerging Markets Equity with a -4.5% return followed by U.S. Equity with a -2.8% return. U.S. Bond and International Developed Markets Equity median portfolios turned in flat returns. The only bright spot was Global Bonds earning a positive median return of 2.4%.
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Representative Universes:
Median Performance as of
June 30, 2006
2nd Quarter 1 Year 3 Years 5 Years
Total Master Trust Universe -1.0% 9.4% 11.1% 6.1%
Total U.S. Equity Portfolios -2.8% 11.1% 15.2% 5.8%
Total U.S. Bond Portfolios 0.0% 0.0% 2.7% 5.5%
Int'l Developed Equity Portfolios 0.0% 27.8% 24.6% 11.9%
Int'l Emerging Equity Portfolios -4.5% 34.8% 35.0% 22.3%
Global Bond Portfolios 2.4% 1.0% 4.8% 8.7%
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The poor performance of the second quarter springs from a number of sources: rising energy prices, draining drain v. drained, drain·ing, drains v.tr. 1. To draw off (a liquid) by a gradual process: drained water from the sink. 2. a. of liquidity worldwide by Central Banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z , the rise in global interest rates, and the unwinding of highly leveraged carry trade positions. All of these factors conspired to elevate el·e·vate tr.v. ele·vat·ed, ele·vat·ing, ele·vates 1. To move (something) to a higher place or position from a lower one; lift. 2. To increase the amplitude, intensity, or volume of. 3. market volatility. This volatility was most pronounced in International Emerging Markets; International Developed Markets weathered the volatility storm better turning in a flat performance for the median portfolio. The yearly returns for both Emerging and Developed Markets remain strong at 34.8% and 27.8% respectively. Within domestic equity styles, large cap outperformed small cap across the value/growth style spectrum in the second quarter, and value consistently outperformed growth across market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. ranges. Large Cap Value was the best performer, although turning in a flat performance, and Small Cap Growth was the worst performer at -5.5% median return. Expanding the time horizon to one year, results are more mixed across the styles. Small Cap Growth had the highest median return of 14.3%, followed by Mid Cap Growth, 13.8% and Small Cap Growth/Mid Cap Core, 12.8%.
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Representative Universes:
Median Performance as of
June 30, 2006
2nd Quarter 1 Year
Large Cap Value 0.0% 12.1%
Large Cap Core -1.4% 8.7%
Large Cap Growth -4.5% 7.1%
Mid Cap Value -1.6% 9.7%
Mid Cap Core -2.4% 12.8%
Mid Cap Growth -4.8% 13.8%
Small Cap Value -2.7% 10.9%
Small Cap Core -3.6% 12.8%
Small Cap Growth -5.5% 14.3%
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From a domestic fixed income perspective, core fixed income domestic bonds were essentially flat in the second quarter. They outperformed high yield domestic bonds which had a median performance of -0.5%. This negative performance for the second quarter contrasts with the annual return for the year ending June June: see month. 30, 2006 where high yield bonds had a median performance of 4.5%. Notes to Editors: The Independent Consultants Cooperative is a consortium of independent investment consulting firms that deliver superior value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products to their clients. The ICC is currently comprised of seventeen well-established firms located across the country that collectively consult to over 10% of the industry's institutional assets. In order to avoid conflicts of interest, none of the ICC member firms offers investment management services. Rather, the ICC focuses solely on the continuous refinement of investment consulting products, systems and diagnostic databases for the collective benefit of their clientele. For more information about the Independent Consultants Cooperative and its member firms, visit the web site at www.icc-group.com |
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