Wilshire Trust Universe Comparison Service® Sees Third-Quarter Performance Down Slightly for All Plan Types

-- First Negative Quarter Since Second Quarter of 2013 --

(copyrighted and owned by Wilshire Associates Incorporated)

SANTA MONICA, Calif.--()--All plan types fell slightly in the third quarter of 2014, down -0.84 percent, as measured by the median performance for all institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®).

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 1,600 plans representing in excess of $3.7 trillion in assets.

“In a quarter where the Wilshire 5000 Total Market Index℠ and Barclays U.S. Aggregate Index returns were up slightly at 0.08 and 0.17 percent, respectively, it is surprising to see that performance for all plan types was in the red,” said Robert J. Waid, managing director at Wilshire Associates. “Small public funds with assets less than $1 billion are the lowest performing plan type, the median performance for which was down -1.07 percent. Large corporate funds with assets greater than $1 billion had the best performance for the second quarter in a row, with median performance down only -0.54 percent.”

“This is a quarter where classic diversification did not pay, with U.S. small-cap, international equity, real estate and commodities all underperforming. This explains why the median performance for all plan types underperformed the classic 60/40 portfolio,” Waid added.

“Unlike last quarter, performance differences between plan types and sizes were small with foundations and endowments having the largest size spread of only 20 basis points, with the median performance for small and large foundations and endowments down -0.96 and -0.79 percent, respectively,” Waid said.

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

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

Release Summary

All plan types fell slightly in the third quarter of 2014, down -0.84 percent, as measured by the median performance for all institutional assets tracked by the Wilshire.

Contacts

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