Domestic core fixed income and international equity mutual funds outpaced U.S. equity mutual funds during the second quarter, according to a Mercer Investment Consulting report. Core fixed income declined 0.2%, while international equity dropped 0.7%. Domestic large-cap core equity mutual funds also declined 2.1%, and small-cap core funds fell 4.3% in the quarter.
Within U.S. equity, value equity mutual funds outperformed growth funds, according to Mercer's quarterly Defined Contribution Universe Summary report, which analyzed returns of various funds. The median large-cap value mutual fund declined 0.1%, compared with a drop of 4.4% for the median large-cap growth fund. The median small-cap value fund dropped 3.3%, while the median small-cap growth fund fell 6.6%.