Wilshire Trust Universe Comparison Service® Reports Best Quarter in Two Years

"What a difference a year makes. Not only was this the fourth positive quarter in a row for all plan types, but it was the best quarter since the second quarter of 2014, which experienced a median return of 3.43 percent," said Robert J. Waid, managing director, Wilshire Associates. "Replacing the third quarter of 2015, which was the worst quarter in four years, with the best quarter in two years, boosted the one-year return to 9.17 percent for the year ending September 30, 2016 from 0.91 percent for the year ending June 30, 2016."

Wilshire TUCS returns were supported by solid performance by all of the major asset classes. The Wilshire 5000 Total Market Index^SM returned 4.29 percent in the third quarter and 15.35 percent for the year ending September 30, 2016, while the MSCI AC World ex U.S. for international equities rose 6.91 percent in the third quarter and 9.26 percent for the year. The Wilshire Bond Index also gained 1.65 percent in the third quarter and 8.34 percent for the year. This resulted in a positive range of median plan-type returns in the third quarter, as the low median return was 2.01 percent for Taft Hartley Health and Welfare Funds and the high median return was 4.24 percent for Foundations and Endowments with assets greater than $500 million. For one-year returns, the low median return was 6.31 percent for Taft Hartley Health and Welfare Funds and the high median return was 10.68 percent for Corporate Funds with assets greater than $1 billion.

"In the third quarter, Taft Hartley Defined Benefit Plans, Taft Hartley Health and Welfare Funds, and Corporate Funds and Public Funds with assets less than $1 billion experienced median returns worse than the 60/40 portfolio, which returned 3.23 percent," Waid said. "This pulled the median return for all plan types to 3.19 percent, just below the 60/40 portfolio for the fifth consecutive quarter."

In the third quarter and for the year ending September 30, 2016, larger Corporate Funds and Public Funds outperformed smaller Corporate Funds and Public Funds, while smaller Foundations and Endowments outperformed their larger counterparts for the year, but not for the quarter. Large Foundations and Endowments continue to have significant exposure to alternatives with the median exposure rising to 49.5 percent in the third quarter.

All plan types with assets greater than $1 billion had median returns of 3.54 percent in the third quarter and 9.90 percent for the year ending September 30, 2016, compared to plans with assets less than $1 billion, which had median returns of 3.09 percent in the third quarter and 8.88 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^SM 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^SM and Wilshire US Small-Cap Index^SM 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 9/30/15 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.

CONTACT:  Lisa Herbert
 +1-310-451-3051
[email protected]

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SOURCE Wilshire Associates

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