WILSHIRE TRUST UNIVERSE COMPARISON SERVICE® SHOWS INSTITUTIONAL INVESTOR PERFORMANCE CUT BY HALF QUARTER-TO-QUARTER
SANTA MONICA, CA, December 4, 2007 – Institutional investors generally saw third
quarter returns of approximately half of what they were in the second quarter, 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. TUCS, the most widely accepted benchmark for the
performance of institutional assets, includes approximately 1,450 plans representing
$3.12 trillion in assets.
The median performance of all master trusts for the year ended September 30, 2007 was
14.29 percent with a third quarter return of 2.01 percent. The median performance of
corporate pension plans was 2.04 percent for the quarter and 14.21 percent for the year
while public pension funds median performance was 2.16 percent for the quarter and
14.16 percent for the year. The third quarter performance for foundations and
endowments was 2.06 percent and 16.59 percent for the year. Taft Hartley funds median
performance was 1.93 percent for the quarter and 12.50 percent for the year. Non-profits
saw a median performance of 2.06 percent in the third quarter and 15.76 percent for the
past 12 months.
"There are several factors that explain the superior returns," said Hilarie C. Green, CFA,
managing director and head of Wilshire Analytics' Performance Reporting division.
"The first is asset allocation; the largest plans have a greater allocation to the non-
traditional asset classes which have outperformed the traditional asset classes recently.
Additionally, the asset class returns are higher for the large funds indicating superior
manager selection and the positive effects of manager diversification within the asset
class," she noted.
TUCS reports the median rates of return and median asset allocation for the time periods
ending September 30, 2007, as follows (returns for periods greater than one year are
annualized).
| PERFORMANCE |
|
ASSET ALLOCATION |
| All Master Trusts |
| One Quarter = 2.01% |
|
Equities = 60.39% |
| One Year = 14.29 |
|
Bonds = 27.61 |
| Three Years = 12.38 |
|
Cash = 2.23 |
| Five Years = 13.26 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Corporate Funds |
| One Quarter = 2.04% |
|
Equities = 63.06% |
| One Year = 14.21 |
|
Bonds = 28.63 |
| Three Years = 12.41 |
|
Cash = 2.24 |
| Five Years = 13.49 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Public Funds |
| One Quarter = 2.16% |
|
Equities = 60.90% |
| One Year = 14.16 |
|
Bonds = 27.20 |
| Three Years = 12.36 |
|
Cash = 2.28 |
| Five Years = 13.25 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.19 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Foundations and Endowments |
| One Quarter = 2.06% |
|
Equities = 59.78% |
| One Year = 16.59 |
|
Bonds = 18.25 |
| Three Years = 13.93 |
|
Cash = 2.32 |
| Five Years = 14.37 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.01 |
| |
|
Alternative Investments = 0.0 |
| |
|
Other = 0.00 |
| Taft Hartley Funds |
| One Quarter = 1.93% |
|
Equities = 51.89% |
| One Year = 12.50 |
|
Bonds = 33.87 |
| Three Years = 10.45 |
|
Cash = 2.19 |
| Five Years = 10.98 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 4.28 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Non-Profit Funds |
| One Quarter = 2.06% |
|
Equities = 62.32% |
| One Year = 15.76 |
|
Bonds = 22.05 |
| Three Years = 13.05 |
|
Cash = 2.19 |
| Five Years = 14.06 |
|
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 = 2.29% |
|
Equities = 60.64% |
| One Year = 15.59 |
|
Bonds = 24.86 |
| Three Years = 13.42 |
|
Cash = 2.81 |
| Five Years = 14.35 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 1.81 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Corporate Funds with Assets Greater than $1 billion |
| One Quarter = 2.33% |
|
Equities = 61.30% |
| One Year = 15.31 |
|
Bonds = 27.59 |
| Three Years = 13.23 |
|
Cash = 3.10 |
| Five Years = 14.20 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate 0.35 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Public Funds with Assets Greater than $1 billion |
| One Quarter = 2.38% |
|
Equities = 60.64% |
| One Year = 15.41 |
|
Bonds = 24.98 |
| Three Years = 13.64 |
|
Cash = 2.73 |
| Five Years = 14.35 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 2.24 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.03 |
| Foundations and Endowments with Assets Greater than $1 billion |
| One Quarter = 2.60% |
|
Equities = 50.03% |
| One Year = 18.14 |
|
Bonds = 14.02 |
| Three Years = 14.51 |
|
Cash = 2.32 |
| Five Years = 15.89 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 2.79 |
| |
|
Alternative Investments = 18.65 |
| |
|
Other = 0.00
|
| Taft Hartley Funds with Assets Greater than $1 billion |
| One Quarter = 1.62% |
|
Equities = 67.35% |
| One Year = 14.88 |
|
Bonds = 22.39 |
| Three Years = 12.42 |
|
Cash = 2.20 |
| Five Years = 14.08 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 5.68 |
| |
|
Alternative Investments = 2.13 |
| |
|
Other = 0.00 |
| Non-Profits with Assets Greater than $1 billion |
| One Quarter = 2.40% |
|
Equities = 53.40% |
| One Year = 18.14 |
|
Bonds = 18.25 |
| Three Years = 15.69 |
|
Cash = 2.54 |
| Five Years = 16.62 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.56 |
| |
|
Alternative Investments = 18.65 |
| |
|
Other = 0.00 |
About Wilshire Associates
Wilshire Associates is a leading global investment technology, investment consulting and
investment management firm with four business units, including: Wilshire Analytics,
Wilshire Funds Management, Wilshire Consulting and Wilshire Private Markets.
Wilshire Analytics develops and provides superior risk management, portfolio analysis,
asset allocation and performance measurement solutions to fund managers, banks,
insurers, consultants and other institutional investment organizations around the world.
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 than 350 employees serving the investment needs
of institutional and high net worth clients around the world.
Based in Santa Monica, CA, Wilshire provides services to clients in more than 20
countries representing in excess of 600 organizations with assets totaling more than US
$12.5 trillion. With nine offices on four continents, Wilshire Associates and its affiliates
are dedicated to providing clients with the highest quality counsel, products and services.
The Dow Jones Wilshire 5000 Composite Indexsm is calculated and distributed by Dow
Jones Indexes pursuant to an agreement between Dow Jones & Company, Inc. and
Wilshire Associates Incorporated. Trust Universe Comparison Service® and TUCS® are
registered service marks of Wilshire Associates Incorporated, Santa Monica, California.
Please visit www.wilshire.com for more information.
# # #
