Wilshire Trust Universe Comparison Service® Sees Fourth Positive Quarter in a Row Drive Ten-Year Return Above 7%

-- Large Plans Outperform Small Plans --

SANTA MONICA, Calif.--()--Large plans outperformed small plans in the second quarter of 2014, propelling the median return for all institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) to 3.43 percent.

Wilshire TUCS, a cooperative effort between Wilshire Analytics, the investment technology unit of Wilshire Associates Incorporated (Wilshire®), and custodial organizations, is the most widely accepted benchmark for the performance and allocation of institutional assets, and includes nearly 1,700 plans representing in excess of $3.5 trillion in assets.

“This is the fourth positive quarter in a row that combined to make the median one-year return 15.71 percent, which in turn helped move the 10-year median return to 7.01 percent,” said Robert J. Waid, managing director at Wilshire Associates. “This is the first time the 10-year median return has been above 7 percent since the third quarter of 2013.

“In a quarter where the Wilshire 5000 Total Market Index and Barclays U.S. Aggregate Index returns are a solid 4.86 and 2.04 percent, respectively, it isn’t surprising to see that overall plan returns are also strong,” Waid said. “Taft Harley Health and Welfare Funds are the lowest performing plan type for the fourth quarter in a row with a median return of 2.23 percent. Foundations and endowments follow with a median return of 3.42 percent, while large corporate funds with assets greater than $1 billion have a median return of 4.15 percent.

“The median returns for all large plan types, except foundations and endowments, outperformed the classic 60/40 portfolio, versus the median return for small plan types, which underperformed,” Waid added.

“Similar to last quarter, corporate funds delivered the largest size spread, with the median return for small and large corporate funds 3.41 and 4.15 percent, respectively,” Waid said.

About Wilshire Associates

Wilshire Associates, a leading global, independent investment consulting and services firm, provides consulting services, analytics solutions and customized investment products to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets.

The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire’s strong analytics foundation. Wilshire developed the Wilshire 5000 Total Market IndexSM and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire has grown to a firm of more than 300 employees serving the investment needs of institutional clients around the world.

Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately US $7 trillion.* With ten offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Wilshire® and Trust Universe Comparison Service®, TUCS® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market IndexSM and Wilshire 4500 Completion IndexSM are service marks of Wilshire Associates Incorporated. Please visit http://www.wilshire.com/.

*Client assets are as represented by Pensions and Investments (detailed in “P&I’s Top 1,000 Largest Retirement Plans” and “P&I’s Largest Money Managers Directory 2013” as of 9/30/12 and 12/31/12, and published 2/4/13 and 5/27/13, respectively).

The data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated.

Contacts

Wilshire Associates
Lisa Herbert
+1-310-899-5325 (O)
+1-310-728-5341 (C)
lherbert@wilshire.com

(copyrighted and owned by Wilshire Associates Incorporated)

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Contacts

Wilshire Associates
Lisa Herbert
+1-310-899-5325 (O)
+1-310-728-5341 (C)
lherbert@wilshire.com