SANTA MONICA, Calif.--(BUSINESS WIRE)--Institutional assets tracked by Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) posted all-plan median returns of 3.21 and 6.47 percent for second quarter and the year ending June 28, 2019, respectively. Wilshire TUCS, a cooperative effort between Wilshire Analytics, the investment technology foundation of Wilshire Associates Incorporated (Wilshire®), and custodial organizations, is widely considered the definitive benchmark for U.S. institutional plan assets performance and allocation.
Second quarter gains built on first quarter’s best return in nearly a decade, but were still not enough to lift the one-year return to meet June 2018 at 7.50 percent.
“For the one year ending in June of 2019, market volatility and active management worked against all plan types,” said Jason Schwarz, president, Wilshire Analytics and Wilshire Funds Management. “Changes in investor and economic sentiment over the past year resulted in unforeseen outcomes for many active managers. In general, deviations from benchmark exposure were challenged, particularly in fixed income, as yields tumbled and pushed the price of U.S. Treasuries materially higher.”
U.S. equities, represented by the Wilshire 5000 Total Market Index℠, rose 3.99 and 9.09 percent, respectively, second quarter and for the year; meanwhile, international equities, represented by the MSCI AC World ex U.S., also rose 2.98 and 1.29 percent, respectively, second quarter and for the year. U.S. bonds, represented by the Wilshire Bond Index℠, increased first quarter with a gain of 3.57 and 9.19, respectively, second quarter and for the year. Multi-asset, represented by the Wilshire Risk Parity – 10% Target Volatility Index℠, rose 6.20 and 12.52 percent, respectively, second quarter and for the year.
Second quarter medians ranged from 2.94 to 3.78 percent for Taft Hartley Health and Welfare Funds to large corporate (assets above $1 billion) plans, respectively; meanwhile, one-year medians ranged from 5.45 to 8.41 percent for large foundations and endowments (assets above $500 million) to large corporate (assets above $1 billion) plans, respectively.
All plan types underperformed the 60/40 portfolio, which rose 3.82 percent second quarter.
For the one-year ending June 2019, all plan types underperformed the 60/40 portfolio, which rose 9.13 percent. Large plans outperformed small for the year across all types with the exception of foundations & endowments, due to their greater equity exposure. Large foundations and endowments (assets above $500 million) continued their significant median exposure to alternatives at 37.75 percent.
Large plans (assets above $1 billion) gained 3.27 and 6.92 percent for the quarter and year ending June 30, respectively; meanwhile, small plans (assets less than $1 billion), underperformed large for both the quarter and year at 3.16 and 6.30 percent, respectively.
Data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated.
About Wilshire Associates
Wilshire Associates, a leading global financial services firm, provides consulting services, analytics solutions and customized investment solutions 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 270 employees serving the needs of investors around the world. Based in Santa Monica, California, Wilshire Associates (Wilshire®) has over $1 trillion in assets under advisement and $65 billion in assets under management and serves more than 500 institutional and intermediary clients worldwide from 10 offices around the globe. Wilshire® and Wilshire 5000® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market Index℠ is a service mark of Wilshire Associates Incorporated.
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