Multiemployer pension funds posted a median loss of 8.2% in 2002, more than three times the 2.4% loss in 2001, according to a new Segal Advisors study. A benchmark made up of 55% of the S&P 500 and 45% of the Lehman Aggregate Bond indexes also would have resulted in a loss of 8.2% last year.
The study also found the plans’ median loss on equity investments was 22.8% for the year, more than double the 11.3% median loss in 2001 but similar to the 22.1% decline in the S&P 500 in 2002. Fixed-income investments posted a median gain of 10.1% last year, nearly the same as the Lehman Aggregate’s 2002 return of 10.3% and better than the 8.5% median gain in 2001, the study noted.