Returns Slightly Negative in October;
Foundations and Endowments Up More than 16 Percent YTD
In a move to keep institutional investors informed in a dynamic investment market atmosphere, data from Wilshire Trust Universe
Comparison Service® (Wilshire TUCS ®), a cooperative effort between Wilshire Analytics, the investment technology unit of Wilshire Associates, and custodial organizations, are now available monthly to clients of the service, according to the global investment consulting and services firm.
“In today’s fast-moving investment climate, a quarter now is a long time to wait for a benchmark against which to assess a fund’s performance,” noted Hilarie C. Green, CFA, managing director and head of Wilshire Analytics’ Performance Reporting division. “This new universe offering is in response to the many plan sponsor requests for monthly Wilshire TUCS reports. Additionally, it enables those plan sponsors with fiscal years that do not coincide with a calendar year to have fiscal year reporting capabilities using Wilshire TUCS.”
The most widely accepted benchmark for the performance of institutional assets, Wilshire TUCS includes approximately 1,100 plans representing $2.25 trillion in assets. The same stringent Wilshire TUCS standards apply to the monthly universes as are used to generate the quarterly universes. Among the institutional investor categories available include: all master trusts; corporate funds; public funds; foundations and endowments; and Taft-Hartley plans (both defined benefit and health and welfare). Universes also are available for all master trusts with asset greater than $1 billion and public funds with more than $1 billion in assets. Performance,
asset allocation, risk vs. return andsegment returns are available for those same institutional investors.
The following individual asset class universes also are now available monthly: U.S. equity; non-U.S. equity; U.S. fixed income; non-U.S. fixed income; cash; convertibles; real estate; hedge funds and private equity.
During October, all categories experienced overall negative median returns with public funds having the worse performance at -1.19 percent and Taft-Hartley health and welfare funds showing the best performance at -0.02 percent. A median return of -0.93 percent was notched by both all master trusts with assets greater than $1 billion and public funds with more than $1 billion. All master trust and foundations and endowments had a median monthly return of -0.95 percent while corporate funds’ median return was -1.04 percent. Showing a -1.09 percent median return was Taft-Hartley defined benefit plans.
Year-to-date, foundations and endowments had the best median return at 16.55 percent, followed by: public funds with assets greater than $1 billion at 14.74 percent; corporate funds at 14.51 percent; all master trusts with assets greater than $1 billion at 14.21 percent; public funds at 14.06 percent; all master trusts at 13.44 percent, Taft Hartley health and welfare at 9.54 percent;
and Taft Hartley defined benefit at 9.34 percent.