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Wilshire TUCS® announces master trusts median performance takes a breather

11/15/2010

Master Trusts Rise over 8 Percent in the Third Quarter Bringing the Year-Ending September Median Return up nearly 10 Percent

 

SANTA MONICA, CA - All Master Trusts returned a healthy 8.26 percent during the third quarter resulting in a one year return of 9.97 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 900 plans representing $2.5 trillion in assets.

Corporate and Public plans had the strongest showing for the quarter, returning 8.89 percent and 8.72 percent respectively. Foundations and Endowments returned 7.83 percent as they were dragged down a bit by their allocation to hedge funds which underperformed the U.S. (Wilshire 5000 Total Market IndexSM, 11.50%) and International Equity (Wilshire Global ex-U.S. IndexSM, 17.14%) markets in the third quarter.

The plan size picture is slightly complicated this quarter due to the variations in allocation for different plan types. In the broad universe of All Master Trusts, the Plans over One Billion outperformed the broader universe returning 8.59 percent versus 8.26 percent. However, in the Foundation and Endowment universe, where the larger plans generally have a lower allocation to equities and a higher allocation to alternatives such as hedge funds, the large plans underperformed returning 7.34 percent versus the broad Foundation and Endowment universe return of 7.83 percent.

For the quarter ending September the equity style median returns ranged from 10.33 percent for Mid Cap Value to 13.11 percent for Mid Cap Growth. Overall, the growth managers outperformed both the value and neutral (core) portfolios during the quarter. There is yet again a wide range of returns for the annual period ending September with a low of 8.88 percent for Large Value and a high of 16.71 percent for Mid Cap Neutral managers. "According to the Wilshire TUCS medians, Small and Mid Capitalization managers have been the best performers over the longer periods returning superior performance for the one, two, three, four, and five year periods ending September 2010 with Large Cap managers lagging behind in each of those periods", said Hilarie C. Green, CFA, managing director and head of Wilshire Analytics' Performance Reporting division.

Once more, the returns for fixed income mangers varied greatly this quarter as indicated by the Wilshire TUCS Fixed Income Style medians. High Yield managers had the best performance for both the quarter and the year ending September with returns of 6.28 percent and 16.52 percent respectively. Not surprisingly, the Short Term managers had the weakest showing for the same periods with returns of 0.64 percent and 3.13 percent. Those same two styles were also the best and worst performers over the five year period where High Yield managers returned an annualized 7.93 percent and Short Term managers returned 4.17 percent annualized.

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.

CONTACT:

Brian Johnson
+1-310-260-6641
bjohnson@wilshire.com


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