WILSHIRE TRUST UNIVERSE COMPARISON SERVICE® SHOWS DOUBLE DIGIT MEDIAN PERFORMANCE FOR THE YEAR ENDED JUNE 30, 2007
Large Non-Profits Lead the way with 20.05% Return
SANTA MONICA, CA, August 23, 2007 –Institutional investors enjoyed double digit median returns for the year ended June 30, 2007 with non-profit funds greater than $1 billion leading the way, 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 more than 1,470 plans representing approximately $3.2 trillion in assets.
The median performance of all master trusts for the year ended June 30, 2007 was 16.42 percent with a second quarter return of 4.21 percent. The median performance of corporate pension plans was 4.16 percent for the quarter and 16.86 percent for the year while public pension funds median performance was 4.23 percent for the quarter and 16.08 percent for the year. The second quarter performance for foundations and endowments was 4.73 percent for the quarter and 17.52 percent for the year. Taft Hartley funds median performance was 3.79 percent of the quarter and 14.59 percent for the year. Non-profits saw a median performance of 4.64 percent in the fourth quarter and 17.10 percent for the past 12 months.
The total market value of the master trust continues to have an impact on performance. The one-year medians illustrate the superior performance of the large plans over the broader universes. Topping all other categories, non-profits with assets greater than $1 billion saw a 20.05 percent rate of return while the return for all non-profits stood at 17.10 percent. Similarly, the one-year median return for all master trusts was 16.42 percent, with the return for those plans with a market value of more than one billion was 17.68 percent. Likewise, for public plans it was 16.08 percent versus 17.69 percent and for corporate plans it was 16.86 percent and 17.49 percent. Endowments and foundations followed the trend with the large plans outperforming with an 18.08 percent return for the year, while the broader endowment and foundation universe median was 17.52 percent.
"Once again, asset allocation differences explain the return differences between the asset size universes. For example, the median non-profit greater than $1 billion has 12 percent less exposure to equity and 19 percent more exposure to alternatives than the median broad non-profit," said Hilarie C. Green, CFA, managing director and head of Wilshire Analytics' Performance Reporting division.
TUCS reports the median rates of return and median asset allocation for the time periods ending June 30, 2007, as follows (returns for periods greater than one year are annualized).
| PERFORMANCE |
|
ASSET ALLOCATION |
| All Master Trusts |
| One Quarter = 4.21% |
|
Equities = 61.75% |
| One Year = 16.42 |
|
Bonds = 25.73 |
| Three Years = 11.63 |
|
Cash = 2.05 |
| Five Years = 10.81 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Corporate Funds |
| One Quarter = 4.16% |
|
Equities = 64.73% |
| One Year = 16.86 |
|
Bonds = 27.18 |
| Three Years = 11.71 |
|
Cash = 2.21 |
| Five Years = 10.81 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Public Funds |
| One Quarter = 4.23% |
|
Equities = 61.75% |
| One Year = 16.08 |
|
Bonds = 27.32 |
| Three Years = 11.77 |
|
Cash = 2.46 |
| Five Years = 10.86 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Foundations and Endowments |
| One Quarter = 4.73% |
|
Equities = 61.51% |
| One Year = 17.52 |
|
Bonds = 19.62 |
| Three Years = 12.80 |
|
Cash = 1.58 |
| Five Years = 11.48 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.00 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Taft Hartley Funds |
| One Quarter = 3.79% |
|
Equities = 55.92% |
| One Year = 14.59 |
|
Bonds = 31.38 |
| Three Years = 10.26 |
|
Cash = 1.86 |
| Five Years = 9.29 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 8.33 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Non-Profit Funds |
| One Quarter = 4.64% |
|
Equities = 63.36% |
| One Year = 17.10 |
|
Bonds = 20.51 |
| Three Years = 12.43 |
|
Cash = 1.42 |
| Five Years = 11.40 |
|
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 = 4.62% |
|
Equities = 61.83% |
| One Year = 17.68 |
|
Bonds = 24.05 |
| Three Years = 12.81 |
|
Cash = 3.25 |
| Five Years = 11.57 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 1.97 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Corporate Funds with Assets Greater than $1 billion |
| One Quarter = 4.45% |
|
Equities = 63.33% |
| One Year = 17.49 |
|
Bonds = 25.90 |
| Three Years = 12.71 |
|
Cash = 3.56 |
| Five Years = 11.30 |
|
Convertibles = 0.01 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.31 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.00 |
| Public Funds with Assets Greater than $1 billion |
| One Quarter = 4.74% |
|
Equities = 61.55% |
| One Year = 17.69 |
|
Bonds = 23.74 |
| Three Years = 12.84 |
|
Cash = 3.51 |
| Five Years = 11.47 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 2.06 |
| |
|
Alternative Investments = 0.00 |
| |
|
Other = 0.01 |
| Foundations and Endowments with Assets Greater than $1 billion |
| One Quarter = 4.59% |
|
Equities = 55.94% |
| One Year = 18.08 |
|
Bonds = 21.64 |
| Three Years = 13.11 |
|
Cash = 3.66 |
| Five Years = 12.31 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 0.63 |
| |
|
Alternative Investments = 5.19 |
| |
|
Other = 0.23 |
| Taft Hartley Funds with Assets Greater than $1 billion |
| One Quarter = 4.45% |
|
Equities = 64.84% |
| One Year = 16.54 |
|
Bonds = 23.45 |
| Three Years = 11.88 |
|
Cash = 2.32 |
| Five Years = 11.69 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 5.97 |
| |
|
Alternative Investments = 3.48 |
| |
|
Other = 0.00 |
| Non-Profits with Assets Greater than $1 billion |
| One Quarter = 5.71% |
|
Equities = 50.92% |
| One Year = 20.05 |
|
Bonds = 18.40 |
| Three Years = 14.78 |
|
Cash = 2.71 |
| Five Years = 13.29 |
|
Convertibles = 0.00 |
| |
|
GIC/GAC = 0.00 |
| |
|
Real Estate = 1.10 |
| |
|
Alternative Investments = 18.82 |
| |
|
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.
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