Aggressive equity allocations — especially to overseas markets — boosted returns for institutional investors during the third quarter, according to Capital Market Review, a Callan Associates quarterly publication. The median endowment and foundation, with an equity allocation of 64%, gained 4.11% for the quarter, outpacing the median public and corporate pension plans, which returned 3.97% and 3.91%, respectively. The median Taft-Hartley plan — with about 46% on average in U.S. equity — returned 3.42%.
International and small-cap stocks had the strongest performance of the quarter. The MSCI EAFE index gained 10.38%, and the S&P 600 gained 5.38%.