“US equity funds in the top quartile of the universe in the third quarter had a larger market capitalization, higher earnings per share growth rates and payout ratios and lower P/E ratios than those in the bottom quartile,” said Paula Gehr, vice president of State Street Investment Analytics. “We saw representation of all equity styles in both the top and bottom quartiles, although very few small value funds made it into the top quartile.”

Characteristics of funds in the top quartile for the full year ending September 30, 2012 were nearly a mirror image: Top quartile funds had a smaller market capitalization, lower earnings per share growth rates and payout ratios but similar P/E ratios to those in the bottom quartile.

The State Street Universe (SSU)

Periods Ending September 30, 2012
       

Median Return

Universe Name
       

One Quarter
       

One Year
       

Three Years
       

Five Years
US Equity Funds         6.2         30.1         13.3         2.1
Global Equity Funds         6.9         19.8         17.7         -1.6
Intl Equity Funds – Developed Mkts         7.2         16.2         4.3         -3.1
Intl Equity Funds – Emerging Mkts         7.4         17.6         6.1         -1.2
US Fixed Income Funds         2.5         8.8         7.9         7.5
Global Fixed Income Funds         4.2         10.3         7.8         7.9
Hedge Funds         2.6         5.6         5.4         1.3

State Street Investment Analytics (SSIA) provides performance and analytics services and employs a team of more of 700 dedicated investment performance professionals across 18 offices worldwide. SSIA services approximately 1,400 clients with asset volumes exceeding $11 trillion, offering comprehensive services in performance, risk, compliance and strategic analysis that help them monitor and measure the success of their investment strategies in any market and in any asset class, including alternative investments.

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