WILSHIRE TRUST UNIVERSE COMPARISON SERVICE® REPORTS INSTITUTIONAL RETURNS EXPERIENCE FIRST NEGATIVE YEAR SINCE MARCH 2003
SANTA MONICA, Calif., August 14, 2008 – For the first time since March 2003, the
one-year performance of institutional portfolios was negative across the board with the
-6.01 percent rate of return for Taft Hartley plans with assets greater than $1 billion the
worst performance for the period ending June 30, 2008, according to the Wilshire Trust
Universe Comparison Service® (Wilshire TUCS®), a cooperative effort between Wilshire
Analytics, the investment technology unit of Wilshire Associates, and custodial
organizations. Wilshire TUCS, the most widely accepted benchmark for the performance
of institutional assets, includes nearly 1,300 plans representing $3.04 trillion in assets.
The median performance of all master trusts for the year ended June 30, 2008 was a -4.49
percent with a quarterly return of –0.74 percent. The median performance of corporate
pension plans was -5.20 percent for the year and -0.87 percent for the quarter while
public pension funds median performance was -4.51 percent for the year and -0.93
percent for the last quarter. The one-year performance for foundations and endowments
was -4.70 percent and -0.49 percent for the quarter. Taft Hartley funds median
performance was -3.55 percent for the year and -0.72 percent for the quarter. Non-profits
saw a median performance of -4.67 percent for the year and -0.37 percent for the quarter.
For the first time, Wilshire TUCS also publicly reported the rates of return for all master
trusts and public pension plans with assets greater than $5 billion. Both categories saw
identical median performances of -4.36 percent for the year and -0.84 percent for the
quarter.
"Even the larger plans with a greater allocation to alternatives were not immune from the
impact of worldwide market volatility during the past year," said Hilarie C. Green, CFA,
managing director and head of Wilshire Analytics' Performance Reporting division. "All
sizes and type of plans saw their performance falter during the last year with asset
allocation unable to mitigate overall performance as it had done recently," she added.
Wilshire TUCS reports the median rates of return and median asset allocation for the time
periods ending June 30, 2008, as follows (returns for periods greater than one year are
annualized):
| MEDIAN PERFORMANCE |
|
MEDIAN ALLOCATION |
| All Master Trusts |
| One Quarter = -.74% |
|
Equities = 57.11% |
| One Year = -4.49% |
|
Bonds = 28.54% |
| Three Years = 6.38% |
|
Cash = 2.40% |
| Five Years = 8.49% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.00% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| Corporate Funds |
| One Quarter = -.87% |
|
Equities = 58.81% |
| One Year = -5.20% |
|
Bonds = 30.24% |
| Three Years = 6.24% |
|
Cash = 2.48% |
| Five Years = 8.67% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.00% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| Public Funds |
| One Quarter = -.93% |
|
Equities = 57.11% |
| One Year = -4.51% |
|
Bonds = 28.50% |
| Three Years = 6.57% |
|
Cash = 2.91% |
| Five Years = 8.92% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.05% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| Foundations and Endowments |
| One Quarter = -.49% |
|
Equities = 57.72% |
| One Year = -4.7% |
|
Bonds = 20.32% |
| Three Years = 7.46% |
|
Cash = 2.01% |
| Five Years = 9.57% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.00% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| Taft Hartley Funds |
| One Quarter = -.72% |
|
Equities = 55.14% |
| One Year = -3.55% |
|
Bonds = 30.22% |
| Three Years = 5.12% |
|
Cash = 2.35% |
| Five Years = 6.86% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 10.14% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| Non-Profit Funds |
| One Quarter = -.37% |
|
Equities = 57.72% |
| One Year = -4.67% |
|
Bonds = 23.15% |
| Three Years = 6.86% |
|
Cash = 2.01% |
| Five Years = 8.99% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.00% |
| |
|
Alternative Investments = 0.00% |
| |
|
Other = 0.00% |
| All Master Trusts with Assets Greater than $1 billion |
| One Quarter = -.84% |
|
Equities = 57.43% |
| One Year = -4.58% |
|
Bonds = 26.21% |
| Three Years = 7.36% |
|
Cash = 2.96% |
| Five Years = 9.59% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 1.95% |
| |
|
Alternative Investments = 5.76% |
| |
|
Other = 0.00% |
| Corporate Funds with Assets Greater than $1 billion |
| One Quarter = -.93% |
|
Equities = 56.68% |
| One Year = -4.77% |
|
Bonds = 27.67% |
| Three Years = 7.09% |
|
Cash = 3.30% |
| Five Years = 9.41% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 0.11% |
| |
|
Alternative Investments = 4.65% |
| |
|
Other = 0.00% |
| Public Funds with Assets Greater than $1 billion |
| One Quarter = -.83% |
|
Equities = 57.68% |
| One Year = -4.36% |
|
Bonds = 26.07% |
| Three Years = 7.57% |
|
Cash = 2.88% |
| Five Years = 9.82% |
|
Convertibles = 0.01% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 3.05% |
| |
|
Alternative Investments = 4.83% |
| |
|
Other = 0.01% |
| Foundations and Endowments with Assets Greater than $1 billion |
| One Quarter = -.60% |
|
Equities = 45.20% |
| One Year = -3.04% |
|
Bonds = 15.10% |
| Three Years = 8.46% |
|
Cash = 2.18% |
| Five Years = 10.42% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 3.16% |
| |
|
Alternative Investments = 12.48% |
| |
|
Other = 0.56% |
| Taft Hartley Funds with Assets Greater than $1 billion |
| One Quarter = -.91% |
|
Equities = 59.80% |
| One Year = -6.01% |
|
Bonds = 22.22% |
| Three Years = 6.50% |
|
Cash = 1.62% |
| Five Years = 8.42% |
|
Convertibles = 0.00% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 6.07% |
| |
|
Alternative Investments = 4.21% |
| |
|
Other = 0.00% |
| Non-Profits with Assets Greater than $1 billion |
| One Quarter = -.44% |
|
Equities = 44.92% |
| One Year = -2.87% |
|
Bonds = 15.10% |
| Three Years = 9.39% |
|
Cash = 2.81% |
| Five Years = 11.53% |
|
Convertibles = 0.01% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 3.16% |
| |
|
Alternative Investments = 24.80% |
| |
|
Other = 0.00% |
| All Master Trusts with Assets Greater than $5 billion |
| One Quarter = -.84% |
|
Equities = 57.41% |
| One Year = -4.36% |
|
Bonds = 25.51% |
| Three Years = 7.91% |
|
Cash = 3.77% |
| Five Years = 10.49% |
|
Convertibles = 0.02% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 3.02% |
| |
|
Alternative Investments = 6.49% |
| |
|
Other = 0.03% |
| Public Funds with Assets Greater than $5 billion |
| One Quarter = -.84% |
|
Equities = 57.73% |
| One Year = -4.36% |
|
Bonds = 26.07% |
| Three Years = 7.91% |
|
Cash = 2.87% |
| Five Years = 10.21% |
|
Convertibles = 0.02% |
| |
|
GIC/GAC = 0.00% |
| |
|
Real Estate = 3.00% |
| |
|
Alternative Investments = 6.17% |
| |
|
Other = 0.03% |
About Wilshire Associates
Wilshire Associates is a leading global investment technology, investment consulting and investment management firm with four business units: Wilshire Analytics, Wilshire Funds Management, Wilshire Consulting, and Wilshire Private Markets. The firm was founded in 1972, revolutionizing the industry by pioneering the application of investment analytics and research to investment management for 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 index now known as the Dow Jones Wilshire 5000 Composite IndexSM, the first asset/liability models for pension funds, the first U.S. equity style metrics work and many other "firsts" as the firm grew to nearly 350 employees serving the investment needs of institutional and high net worth clients around the world.
Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing approximately 600 organizations with assets totaling more than $12.5 trillion. With ten offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Wilshire Trust Universe Comparison Service® and Wilshire TUCS® are registered trademarks of Wilshire Associates Incorporated. Please visit www.wilshire.com for more information.
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