SANTA MONICA, Calif.--(BUSINESS WIRE)--Institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) saw a median return of 4.02 percent for all plan types in the first quarter and a median one-year gain of 10.49 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 sixth consecutive positive quarter, which is 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. Not only was this the sixth positive quarter in a row for all plan types, but it was the best quarter since the fourth quarter of 2013, which saw a median return of 4.81 percent,” said Robert J. Waid, managing director, Wilshire Associates. “This quarter’s return boosted the one-year return to 10.49 percent for the year ending March 31, 2017, compared to 7.24 percent for the year ending December 31, 2016.”
Wilshire TUCS returns were supported by strong performance across all major asset classes. The Wilshire 5000 Total Market IndexSM returned 5.61 percent for the first quarter and 18.35 percent for the year ending March 31, 2017, while the MSCI AC World ex U.S. (Net) for international equities rose 7.86 percent in the first quarter and 13.13 percent for the year. The Wilshire Bond Index also gained 1.27 percent in the first quarter and 2.92 percent for the year. This resulted in a positive range of median plan-type returns in the first quarter, as the low median return was 2.52 percent for Taft Hartley Health and Welfare Funds and the high median return was 4.71 percent for Foundations and Endowments with assets greater than $500 million. For one-year returns, the low median return was 6.53 percent for Taft Hartley Health and Welfare Funds and the high median return was 12.51 percent for Foundations and Endowments with assets greater than $500 million.
“In the first quarter, Taft Hartley Defined Benefit Plans, Taft Hartley Health and Welfare Funds, and Corporate Funds experienced median returns worse than the 60/40 portfolio, which returned 3.87 percent,” Waid added. “This pulled the median return for all plan types down to 4.02 percent, but it remained above the 60/40 portfolio for the first quarter since the quarter ending June 2015.”
In the first quarter and for the year ending March 31, 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 as the median exposure rose to 40.34 percent in the first quarter.
All plan types with assets greater than $1 billion experienced median returns of 4.16 percent for the first quarter and 11.04 percent for the year ending March 31, 2017, compared to plans with assets less than $1 billion, which experienced median returns of 3.98 percent for the first quarter and 9.93 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 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 serves in excess of 500 clients across 20 countries with combined assets exceeding $7 trillion*. With ten offices worldwide, 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 Index℠ and Wilshire US Small-Cap Index℠ are service marks of Wilshire Associates Incorporated.
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*Client assets are as represented by Pensions and 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 9/30/15 and 12/31/15, and published 2/8/16 and 5/30/16, respectively). The data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated.