Wilshire Trust Universe Comparison Service® Reports First Negative Quarter in Two Years

-- Quarter’s Performance Pulled Down by All Major Asset Classes --

-- 60/40 Portfolio Underperforms Median Returns for All Plan Types --

(Graphic: Wilshire Associates Incorporated)

SANTA MONICA, Calif.--()--Institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) saw a median return of -0.47 percent for all plan types in the first quarter and a median one-year gain of 9.51 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 first negative quarter since third quarter of 2015,” said Jason Schwarz, president, Wilshire Analytics and Wilshire Funds Management. “Returns for the quarter pulled the one-year return of 9.51 percent for the year ending March 31, 2018 down from 14.72 percent for the year ending December 31, 2017,” Schwarz added.

Wilshire TUCS first quarter returns were weighed down by losses across all major asset classes. The Wilshire 5000 Total Market Index℠ returned -0.76 percent for the first quarter and 13.69 percent for the year ending March 31, 2018, while the MSCI AC World ex U.S. for international equities fell -1.18 percent in the first quarter, but gained 16.53 percent for the year. The Wilshire Bond Index℠ also fell -1.82 percent in the first quarter, but gained 1.63 percent for the year. This translated to median returns with a low of -0.95 percent for Corporate Funds with assets greater than $1 billion and high of 1.57 percent for Foundations and Endowments with assets greater than $500 million. One-year returns ran the gamut from a low median return of 6.55 percent for Taft Hartley Health and Welfare Funds to a median high of 12.02 percent for Foundations and Endowments with assets greater than $500 million.

“In first quarter, median returns for all plan types outperformed the 60/40 portfolio, which returned -1.18 percent,” noted Schwarz. “The only plan types to deliver positive median returns for the quarter were Large Public Funds with assets greater than $1 billion and large Foundations and Endowments with assets greater than $500 million,” Schwarz added.

For the year ending March 31, 2018, larger Corporate Funds, Public Funds and Foundations and Endowments outperformed smaller Corporate Funds, Public Funds and Foundations and Endowments. Large Foundations and Endowments continued to have significant exposure to alternatives as the median exposure rose to 30.61 percent in first quarter.

All plan types with assets greater than $1 billion posted median returns of -0.13 percent for the first quarter and 10.64 percent for the year ending March 31, 2018, compared to plans with assets less than $1 billion, with median returns of -0.54 percent for the first quarter and 9.27 percent for the year.

The data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated. No part of the chart may be re-produced.

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 approximately 275 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℠ and Wilshire Bond Index℠ are service marks of Wilshire Associates Incorporated.

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

*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 9/30/16 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 TUCS
Lisa Herbert, +1-310-451-3051
lherbert@wilshire.com

Contacts

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