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Wilshire TUCS Announces Master Trusts Median Annual Investment Performance at Highest Level Since 2003

3/9/2010

Foundations and Endowments Return More than 21 Percent; Taft Hartley Funds Lag at  12.54 Percent

 

SANTA MONICA, CA - The calendar-year median return of 18.38 percent for all master trusts for 2009 was the highest level reached since 2003 when it was 20.69 percent, 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 approximately 1,100 plans representing $2.55 trillion in assets.

Tallying the best median returns were foundations and endowments at 21.18 percent followed by corporate funds with a 19.92 percent median return. Next in line were public funds with a median return of 19.82 percent. Following closely were public funds with assets greater than $1 billion under management and public funds with more than $5 billion in assets with both reaching a median return of 19.76 percent.

Taft Hartley plans with more than $1 billion in assets and all master trusts with greater than $5 billion tied at a median return of 18.74 percent. All master trusts with assets greater than $1 billion had a median return of 18.51 percent. As did all master trusts, corporate plans with assets greater than $1 billion saw a median return of 18.38 percent.

In a newly announced category, foundations and endowments with assets greater than $500 million achieved a median return of 18.21 percent. Trailing by nearly six percentage points were Taft Hartley plans with a median return of 12.54 percent.

"Taft Hartley plans were hit hard by their commitment to real estate with a median allocation of 7.3 percent, higher than any other plan or sponsor type." said Hilarie C. Green, CFA, managing director and head of Wilshire Analytics' Performance Reporting division. "However, with their greater asset allocation to investments in equity and alternatives, foundations and endowments were able to get the most bounce back from the negative returns of 2008," she added.

Wilshire 5000 Total Market IndexSM) , a proxy for the United States stock markets rallied strongly in 2009 shaking off a -24.49* percent selloff through its March 9, 2009 low to rally 69.92 percent and close the year with an impressive 28.30 percent return; its highest yearly gain since a 31.64 percent advance in 2003. The market ended 2009 with three consecutive quarterly gains and a notable return of 43.46 percent for that nine month stretch. The total market value gain for 2009 was approximately $3 trillion. The Wilshire Global Total Market IndexSM) saw an annual gain of 37.19 percent while the Wilshire Global exUS IndexSM) was up 44.08 percent during 2009.

"According to the Wilshire TUCS Style Analysis Mid Cap Value managers had the best performance for the year, returning 38.75 percent; whereas Large Value managers had the still stellar, but lowest performance, at 24.81 percent," Green noted. For the quarter, equity managers ranged from 4.33 percent for Small Value to 7.43 percent for Large Growth.

For more information about the Wilshire Trust Universe Comparison Service, please e-mail TUCS@wilshire.com.

Click here for this quarters Wilshire TUCS® Universe median rates of return and median asset allocation.

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, 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 Wilshire 5000 Total Market 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 approximately 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 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. Wilshire is a registered service mark of Wilshire Associates Incorporated. Please visit www.wilshire.com for more information.

MEDIA CONTACT:

Brian Johnson
+1-310-451-3051
bjohnson@wilshire.com 


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