Wilshire Trust Universe Comparison Service® Sees Sixth Year in a Row of Annual Gains

-- U.S. Equity Returns Pull Fourth Quarter Up --

SANTA MONICA, Calif.--()--Institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) experienced positive returns for each of the six calendar years since the Financial Crisis.

Wilshire TUCS, a cooperative effort between Wilshire Analytics, the investment technology unit of Wilshire Associates Incorporated (Wilshire®), and custodial organizations, is considered the most widely accepted benchmark for the performance and allocation of institutional assets in North America.

“Similar to 2013, U.S. Equities trumped all other asset classes in the 2014 fourth quarter and full year,” stated Robert J. Waid, managing director, Wilshire Associates. “The exception for 2014 was the U.S. real estate asset class, with the Wilshire US RESI gaining 15.05 percent and 31.53 percent for the quarter and year, respectively. The Wilshire 5000 Total Market IndexSM was up 5.26 percent and 12.74 percent, respectively, during the fourth quarter and in 2014, versus international equity’s decline of -3.87 percent for both the quarter and year for the MSCI AC World ex U.S.

“Bonds were solid, as the Barclays U.S. Aggregate’s followed its 2013 losses, with gains for the fourth quarter and year of 1.79 percent and 5.97 percent, respectively,” Waid said. “This translates to a small range of plan returns with a low of 1.24 percent for Taft Harley Health and Welfare Funds and a high of 2.14 percent for Corporate Funds for the quarter. The spread for 2014 returns was also small, with a low of 4.78 percent for Taft Harley Health and Welfare Funds and a high of 6.92 percent for Corporate Funds.

“All plan types had a median return of 1.70 percent, for a slight bounce off their first negative quarter since the second quarter of 2013,” Waid said. “Three of the four quarters in 2013 had median returns for All Master Trusts that exceeded 1.6 percent, resulting in a median 2014 return of 6.00 percent, making this the sixth year in a row of positive median returns. In nine out of the last ten years, all plan types had positive returns, five of which were in the double digits.

“Since small plans generally have larger exposure to U.S. Equities than large plans, it is somewhat surprising that large plans outperformed smaller plans slightly,” Waid said. “All plan types with assets greater than $1 billion had median returns of 1.75 percent and 7.09 percent for the quarter and year, respectively.”

 
Trust Universe Comparison Service
2014 Fourth Quarter
 
MEDIAN       MEDIAN
PERFORMANCE       ALLOCATION*
All Master Trusts
One Quarter =       1 .70% US Equities =       36 .29%
One Year = 6 .00% Intl Equities = 10 .94%
Three Years = 11 .17% US Bonds = 26 .60%
Five Years = 9 .32% Intl Bonds = 0 .00%
Ten Years = 6 .45% Cash = 2 .67%
Convertibles = 0 .00%
Real Estate = 0 .00%
                Alternative Investments =       1 .58%
Corporate Funds
One Quarter = 2 .14% US Equities = 30 .70%
One Year = 6 .92% Intl Equities = 8 .30%
Three Years = 11 .20% US Bonds = 42 .78%
Five Years = 9 .78% Intl Bonds = 0 .00%
Ten Years = 6 .59% Cash = 2 .55%
Convertibles = 0 .00%
Real Estate = 0 .00%
                Alternative Investments =       0 .00%
Public Funds
One Quarter = 1 .94% US Equities = 45 .40%
One Year = 6 .76% Intl Equities = 12 .97%
Three Years = 12 .15% US Bonds = 25 .37%
Five Years = 9 .95% Intl Bonds = 0 .00%
Ten Years = 6 .60% Cash = 2 .94%
Convertibles = 0 .00%
Real Estate = 4 .14%
                Alternative Investments =       0 .70%
Foundations and Endowments
One Quarter = 1 .26% US Equities = 33 .68%
One Year = 5 .36% Intl Equities = 14 .05%
Three Years = 10 .93% US Bonds = 16 .03%
Five Years = 8 .92% Intl Bonds = 0 .00%
Ten Years = 6 .31% Cash = 2 .33%
Convertibles = 0 .00%
Real Estate = 0 .00%
                Alternative Investments =       10 .58%
Taft Hartley Defined Benefit Plans
One Quarter = 1 .95% US Equities = 45 .17%
One Year = 6 .27% Intl Equities = 9 .72%
Three Years = 12 .18% US Bonds = 28 .36%
Five Years = 9 .97% Intl Bonds = 0 .00%
Ten Years = 6 .41% Cash = 3 .63%
Convertibles = 0 .00%
Real Estate = 1 .63%
                Alternative Investments =       1 .89%
Taft Hartley Health and Welfare Funds
One Quarter = 1 .24% US Equities = 27 .71%
One Year = 4 .78% Intl Equities = 0 .32%
Three Years = 6 .79% US Bonds = 54 .97%
Five Years = 6 .77% Intl Bonds = 0 .00%
Ten Years = 5 .97% Cash = 9 .12%
Convertibles = 0 .00%
Real Estate = 0 .00%
                Alternative Investments =       0 .00%
All Master Trusts with Assets Greater than $1 billion
One Quarter = 1 .75% US Equities = 32 .40%
One Year = 7 .09% Intl Equities = 11 .63%
Three Years = 11 .58% US Bonds = 23 .66%
Five Years = 10 .04% Intl Bonds = 1 .02%
Ten Years = 6 .82% Cash = 3 .62%
Convertibles = 0 .00%
Real Estate = 0 .50%
                Alternative Investments =       9 .05%
Corporate Funds with Assets Greater than $1 billion
One Quarter = 2 .51% US Equities = 25 .82%
One Year = 8 .36% Intl Equities = 9 .54%
Three Years = 11 .23% US Bonds = 43 .84%
Five Years = 10 .04% Intl Bonds = 1 .63%
Ten Years = 6 .82% Cash = 3 .62%
Convertibles = 0 .00%
Real Estate = 0 .00%
                Alternative Investments =       2 .59%
Public Funds with Assets Greater than $1 billion
One Quarter = 1 .55% US Equities = 37 .60%
One Year = 6 .84% Intl Equities = 16 .06%
Three Years = 12 .14% US Bonds = 20 .41%
Five Years = 10 .13% Intl Bonds = 1 .69%
Ten Years = 6 .77% Cash = 3 .90%
Convertibles = 0 .00%
Real Estate = 4 .37%
                Alternative Investments =       9 .61%
Foundations and Endowments with Assets Greater than $500 Million
One Quarter = 1 .06% US Equities = 33 .51%
One Year = 6 .14% Intl Equities = 14 .10%
Three Years = 11 .67% US Bonds = 9 .86%
Five Years = 9 .73% Intl Bonds = 0 .01%
Ten Years = 6 .98% Cash = 3 .84%
Convertibles = 0 .00%
Real Estate = 0 .94%
                Alternative Investments =       28 .76%
All Master Trusts with Assets Greater than $5 billion
One Quarter = 1 .85% US Equities = 34 .52%
One Year = 7 .55% Intl Equities = 15 .11%
Three Years = 12 .14% US Bonds = 21 .78%
Five Years = 10 .18% Intl Bonds = 1 .83%
Ten Years = 6 .85% Cash = 4 .10%
Convertibles = 0 .02%
Real Estate = 3 .74%
                Alternative Investments =       10 .11%

Public Funds with Assets Greater than $5 billion

One Quarter = 1 .55% US Equities = 37 .60%
One Year = 7 .09% Intl Equities = 16 .55%
Three Years = 12 .20% US Bonds = 19 .94%
Five Years = 10 .18% Intl Bonds = 1 .73%
Ten Years = 6 .77% Cash = 4 .23%
Convertibles = 0 .09%
Real Estate = 4 .38%
Alternative Investments = 10 .64%
 

* Median allocations will not add up to 100 percent. No part of the chart may be re-produced.

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 the industry’s integrated asset/liability analysis/simulation models as well as the industry’s 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 serves in excess of 500 clients across 20 countries with combined assets exceeding $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.

Website: www.wilshire.com

Follow us: @WilshireAssoc

**Client assets are as represented by Pensions and Investments, detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money Managers (U.S. institutional tax-exempt assets)” as of 9/30/13 and 12/31/13, and published 2/3/14 and 5/26/14, respectively.

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

Contacts

Wilshire Associates
Lisa Herbert, +1-310-451-3051
lherbert@wilshire.com

Contacts

Wilshire Associates
Lisa Herbert, +1-310-451-3051
lherbert@wilshire.com