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Wilshire 5000(SM) Rebounds Gaining $1.4 Trillion in Third Quarter

10/12/2010

Wilshire US Real Estate Securities IndexSM Up 14.68 Percent

 

SANTA MONICA, CA - Rebounding from a dismal second quarter, the Wilshire 5000 Total Market IndexSM, the original pure and completeSM measure of the U.S. stock market, closed September 30, 2010 at 12,020.91, up 11.50 percent for the quarter and 9.31 percent for the month. This brought the index's year-to-date return to 5.00 percent and resulted in an estimated increase in market value of $1.4 trillion during the quarter and $1.2 trillion for the month, according to Wilshire Associates Incorporated, a global independent investment consulting and services firm.

"Looking at the returns for the Wilshire Global Total Market IndexSM, we noted that after the pessimism and sharp losses of the second quarter, global stock markets bounced back with solid gains of 15.04 percent for the third quarter and 10.01 percent for the month of September," said Robert J. Waid, managing director, Wilshire Associates and head of Wilshire Index Research. Interestingly, not only was every sector in every region of the Wilshire Global positive for the first time since the third quarter 2009, all but seven region-sectors had double digit gains. Beating U.S. returns, the Wilshire Global exUS IndexSM was up 17.14 percent this past quarter and 10.40 percent for September.

For the quarter, Latin America outperformed all other regions by posting the largest quarterly gain of 20.88 percent as measured by the Wilshire Regional Indexes. However, for the month of September, Europe outperformed all other regions by posting the largest monthly gain of 12.04 percent. Asia/Pacific posted the narrowest gain of 12.72 percent for the quarter and 8.37 percent for the month.

Zeroing in on the Wilshire 5000 performance, Russell Walker, vice president, Wilshire Associates and a member of the Investment Research Group of Wilshire Consulting, stated, Individual investors stayed on the sidelines during the third quarter and the markets moved on notably low volume. The Wilshire 5000 began the quarter with a strong 6.97 percent rise in July, then sold off some gains in August, falling -4.65 percent; September saw a major rally, with the index rising 9.31 percent.

"Ironically, the comeback in the U.S. stock market in the third quarter has as a main cause the current slowdown in the U.S. economic recovery from the recent recession, which officially ended in June 2009,said Walker. The Federal Reserve is expected to resume its purchases of U.S. Treasury paper to inject money into the financial markets and prop up the sagging U.S. economy. As Treasury yields fall, investors historically rotate into assets with higher return potential; this helped fuel the broad market rally in 2009 and seems to have repeated itself this quarter."

Small capitalization stocks experienced the strongest gains during the third quarter with the Wilshire US Small-Cap IndexSM posting a quarterly gain of 11.98 percent with the monthly return coming in at 12.13 percent. The Wilshire Global Small-Cap IndexSM posted a quarterly increase of 16.20 percent, while gaining 11.35 percent in September. Micro-cap stocks were underperformers for the quarter, with the Wilshire US Micro-Cap IndexSM showing a relatively modest gain of 7.19 percent. For the month, however, it was up 11.17 percent. The Wilshire US Large-Cap IndexSM was up 11.48 percent for the quarter and 8.99 percent for the month. On a global basis, the Wilshire Global Large-Cap IndexSM posted a quarterly gain of 14.90 percent with September seeing a 10.98 percent rise.

In the United States, for the quarter and the month the Wilshire US Real Estate Investment Trust (REIT) IndexSM rose 13.35 percent and 4.54 percent, respectively. The Wilshire US Real Estate Securities IndexSM (RESI) gained 13.24 percent for the quarter and 4.60 percent for the month. The Wilshire Global REIT IndexSM posted 17.65 percent and 7.25 increases for the quarter and month. The Wilshire Global RESI IndexSM closed the quarter up 18.80 percent, with a 7.87 return for September.

THIRD QUARTER 2010 GLOBAL RETURNS AT A GLANCE:

 

Index Name Index Close Point Change Total Return % Change
MTD MTD YTD 1-Year 3-Year 5-Year
Wilshire 5000 12,020.91 9.31% 11.50% 5.00% 11.08% -6.46% 1.11%
Wilshire Global TMI 2,415.96 10.01% 15.04% 5.91% 10.63% -6.34% 3.34%
Wilshire Global exUS Index 2,109.40 10.40% 17.14% 6.20% 10.09% -6.42% 5.11%
Wilshire Europe Index 2,730.40 12.04% 20.26% 1.91% 5.54% -9.29% 3.61%
Wilshire Asia / Pacific Index 1,288.82 8.37% 12.72% 8.46% 11.30% -5.12% 4.95%
Wilshire Latin America Index 10,176.82 10.66% 20.88% 12.64% 26.53% 6.09% 18.49%
Wilshire Middle East & Africa Index 2,826.17 11.96% 20.64% 14.35% 19.21% -3.91% 5.72%

 

THIRD QUARTER 2010 WILSHIRE GLOBAL SECTOR WINNERS AND LOSERS BY REGION:

 

United States Europe Middle East & Africa
           
TOP 3          
Telecommunications Services 20.38 Consumer Discretionary 25.93 Consumer Discretionary 37.83
Materials 18.91 Energy 23.66 Energy 26.76
Consumer Discretionary 15.78 Telecommunications Services 23.00 Telecommunications Services 26.75
           
BOTTOM 3          
Consumer Staples 10.69 Consumer Staples 14.87 Financials 22.26
Health Care 8.74 Information Technology 14.19 Materials 14.37
Financials 5.04 Health Care 12.53 Health Care 5.67
Latin America Asia/Pacific World
           
TOP 3          
Financials 32.35 Materials 18.53 Materials 21.36
Industrials 31.54 Consumer Staples 15.37 Telecommunications Services 17.70
Health Care 29.53 Industrials 14.46 Consumer Discretionary 17.35
           
BOTTOM 3          
Utilities 12.06 Telecommunications Services 10.58 Information Technology 11.99
Information Technology 10.35 Health Care 9.15 Utilities 11.48
Telecommunications Services 8.38 Utilities 2.98 Health Care 9.95

 

SEPTEMBER WILSHIRE GLOBAL SECTOR WINNERS AND LOSERS BY REGION:

 

United States Europe Middle East & Africa
           
TOP 3          
Information Technology 12.36% Consumer Discretionary 17.27% Consumer Discretionary 20.39%
Consumer Discretionary 12.30% Information Technology 16.23% Energy 16.81%
Industrials 11.95% Materials 15.45% Consumer Staples 13.84%
           
BOTTOM 3          
Financials 6.24% Health Care 8.10% Materials 10.66%
Consumer Staples 5.83% Utilities 7.11% Information Technology 9.56%
Utilities 3.13% Telecommunications Services 6.67% Health Care 8.59%
Latin America Asia/Pacific World
           
TOP 3          
Health Care 13.55% Materials 12.48% Materials 13.37%
Materials 12.76% Energy 11.84% Consumer Discretionary 12.37%
Financials 11.16% Information Technology 10.10% Information Technology 12.03%
           
BOTTOM 3          
Consumer Staples 8.87% Health Care 6.02% Consumer Staples 7.54%
Energy 8.16% Telecommunications Services 5.30% Telecommunications Services 7.24%
Utilities 4.48% Utilities -0.68% Utilities 3.75%

 

For more information about the Wilshire Index Family please e-mail WilshireIndexes@wilshire.com.

*All values as of September 30, 2010. Index values are in price values. All returns are total returns and reflect float-adjusted market capitalization. Returns are annualized for periods greater than one year.

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 is a registered service mark of Wilshire Associates Incorporated. Please visit www.wilshire.com for more information.

CONTACT:

Kim Shepherd
+1-773-252-9986
kshepherd.ext@wilshire.com


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