Wilshire Trust Universe Comparison Service® Reports Best One-Year Returns in 3 Years

Seventh Positive Quarter in a Row, Marks Longest Positive Quarterly Streak in 19 Years

Wilshire TUCS Plan Returns versus 60/40 Year Ending June 30, 2017 (Graphic: Business Wire)

SANTA MONICA, Calif.--()--Institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) saw a median return of 2.88 percent for all plan types in the second quarter and a median one-year gain of 11.31 percent. 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.

“This quarter marked the seventh consecutive positive quarter, the longest string of positive quarterly returns for all plan types since June 1998, which marked a string of 14 positive quarters in a row,” said Robert J. Waid, managing director, Wilshire Associates. “Second quarter returns boosted the one-year return to 11.31 percent for the period ending June 30, 2017, compared to 10.49 percent for the year ending March 31, 2017. This quarter’s one-year return marks the best since the period ending June 30, 2014 posted a 15.51 percent gain.”

Wilshire TUCS returns were supported by continued strong performance across all major asset classes. The Wilshire 5000 Total Market IndexSM returned 2.95 percent for the second quarter and 18.54 percent for the year ending June 30, 2017, while the MSCI AC World ex U.S. (Net) for international equities rose 5.78 percent in the second quarter and 20.45 percent for the year. The Wilshire Bond Index also gained 1.95 percent in the second quarter and 1.64 percent for the year. This resulted in a positive range of median plan-type returns in the second quarter, as the low median return was 1.70 percent for Taft Hartley Health and Welfare Funds and the high median return was 3.63 percent for Corporate Funds with assets greater than $1 billion. For one-year returns, the low median return was 6.35 percent for Taft Hartley Health and Welfare Funds and the high median return was 13.58 percent for Foundations and Endowments with assets greater than $500 million.

“In the second quarter, only Taft Hartley Health and Welfare Funds experienced median returns worse than the 60/40 portfolio, which returned 2.55 percent,” said Waid. “This pulled the median return for all plan types down slightly to 2.88 percent, but it remained above the 60/40 portfolio for the second quarter in a row. Last quarter was notably the first time this happened since the quarter ending June 30, 2015.”

“For the year ending June 30, 2017, large Foundations & Endowment, large Public Plans and small Public Plans experienced median returns better than the 60/40 portfolio, which returned 11.85 percent,” Waid added. “This pulled the median return for all plan types up to 11.31 percent, but it remained just below the 60/40.”

In the second quarter and for the year ending June 30, 2017, larger Public Funds and Foundations and Endowments outperformed smaller Public Funds and Foundations and Endowments. Large Foundations and Endowments continued to have significant exposure to alternatives, although the median exposure did decline to 37.58 percent in the second quarter.

All plan types with assets greater than $1 billion experienced median returns of 3.15 percent for the second quarter and 12.01 percent for the year ending June 30, 2017, compared to plans with assets less than $1 billion, which experienced median returns of 2.72 percent for the second quarter and 11.12 percent for the year.

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 Index℠ 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 approximately 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 $8 trillion*. With ten offices worldwide, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality products and services. Wilshire®, Wilshire Trust Universe Comparison Service® and Wilshire TUCS® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market Index℠ is a service mark of Wilshire Associates Incorporated.

Website: www.wilshire.com
Follow us: @WilshireAssoc

*Client assets are as represented by Pensions & Investments (P&I), detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money Managers (U.S. institutional tax-exempt assets)” as of 9/30/16 and 12/31/16, and published 2/6/17 and 5/29/17, respectively.
The data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated.

Contacts

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

Contacts

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