ICC Universe Shows Median U.S. Fund Sponsor Lost 8.4% in the Third Quarter of 2008.BOSTON Boston, town, EnglandBoston, 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 cooperative Organization owned by and operated for the benefit of those using its services. Cooperatives have been successful in such fields as the processing and marketing of farm products and the purchasing of other kinds of equipment and raw materials, and in the (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 more than 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 third quarter results for their universe of actual accounts. The universe, which is the largest and most robust institutional investment performance database, includes nearly 23,000 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 more than 1300 institutional plans. The median master trust in the ICC Universe dropped 8.4% in the third quarter and lost 14.2% for the year ended September September: see month. 30, 2008. Endowments & Foundations had the greatest losses in the quarter, down 8.8%, while Public Funds See Fund, 3. See also: Public lost the least (-8.0%). Public Funds also lost the least for the full year period, down 14.2%. Taft Hartley funds lagged behind the other sponsor types for the one, three, and five year periods. [TABLE OMITTED] International equity funds fell sharply third quarter. The median International Emerging Market Equity Fund plunged 25.8% in the quarter, dragging the one year result down to a loss of 32.7%. International Developed Market Equity funds didn't did·n't Contraction of did not. didn't did not didn't do fare much better, dropping 18.9% in the quarter and 28.1% for the year. US Equity funds also lost ground in the quarter but not at such a precipitous rate: The median fund lost 8.8% in quarter, but previous quarter declines brought the one year return down to a 21.6% loss. Global Equity Funds results were in between (down 15.2% and 25.8% for the quarter and year, respectively). Fixed income funds also lost ground in the third quarter but outperformed equity funds. US Bond Funds lost the least, with the median fund down 2%, while Global Bond Funds fell 5.2%. International Developed Bond funds lost 3.4% in the quarter, but for the year end September 30, 2008, they had the highest median return - up 3.5%. US Bond Funds were also in positive territory for the year, up 2%. Global Bond Funds declined 0.5% for the year, again dragged down by exposure to emerging markets. In the third quarter, small capitalization-oriented funds outperformed large and mid-cap Mid-cap Short for "Middle Cap," mid cap refers to stocks with a market capitalization of between $2 billion to $10 billion. Notes: As the name implies, a mid-cap is in the middle of the pack. A mid-cap isn't too big, but at the same time has a relatively decent market cap. funds in every style. Within each size band, growth-oriented funds lagged behind value and core styles. Only Small Value funds had a positive median return, gaining 2.3%, while the Small Core lost only 2% in the quarter. Mid- mid- pref. Middle: midbrain. and Large-Cap Large-cap A stock with a high level of capitalization, usually at least $5 billion market value. large-cap 1. Of or relating to the common stock of a big corporation that has considerable retained earnings and a large amount of Growth funds fared the worst, falling 14.6% and 13.0%, respectively. For the year ending September 30, 2008, all styles took substantial hits and large capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. funds suffered the greatest losses. Within each style, small-capitalization Adj. 1. small-capitalization - of stocks of companies with a market capitalization of less than one billion dollars small-cap, small-capitalisation funds were down least while large capitalization funds fared the worst. The median Large Cap Value fund plummeted 25.6%, followed by Large Cap Core and Large Cap Growth, down 21.9% and 21.5%, respectively. Small Cap Core and Small Cap Value funds fared best, falling 13.8% and 15%, respectively.
Representative Actively-Managed Universes > >
Median Performance as of September 30, 2008 > >
> >
Equity Style > > 1 Qua-
1 Year
> >
Large Cap Value > > -8.6
-25.6
Large Cap Core > > -8.3
-21.9
Large Cap Growth > > -13.0
-21.5
Mid Cap Value > > -7.5
-18.0
Mid Cap Core > > -8.6
-17.4
Mid Cap Growth > > -14.6
-21.2
Small Cap Value > > 2.3
-15.0
Small Cap Core > > -2.0
-13.8
Small Cap Growth > > -8.2
-19.9
From a domestic fixed income perspective, the turmoil in the financial markets rewarded shorter term, higher quality funds in both the third quarter and for the full year ended September 30, 2008. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. funds just managed to stay in positive territory in the third quarter, with the median fund gaining 0.1%, followed in order by Intermediate funds (down 1.7%), Core and Core Plus funds (down 2.1%), and Long funds (down 4%). High Yield funds suffered the greatest losses in the quarter and the year ended September 30, 2008: the median High Yield fund fell 5.7% and 6.2%, respectively. Short-term funds fared best, rising 3.6%, followed by Intermediate funds which gained 2.4% in the year and Core Plus strategies, with a median return of 2.2%. Long funds declined slightly, down 0.9%.
Representative Actively-Managed Universes > >
Median Performance as of September 30, 2008 > >
> >
Bond Style > > 1 Qua-
1 Year
> >
Short > > 0.1
3.6
Intermediate > > -1.7
2.4
Core > > -2.1
1.5
Core Plus > > -2.1
2.2
Long > > -4.0
-0.9
High Yield > > -5.7
-6.2
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 sixteen 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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