InvestorForce Plan Universes funds posted a median net return of 3.4% in the quarter ended June 30.
For the one-, three- and five-year periods, the universes had median net returns of 14.9%, 8.5% and 11.3%, respectively. Returns for the three and five years are annualized.
For the second consecutive quarter, the corporate defined benefit plan universe led all types with a 4% median return. Endowments and foundations returned 3.6%, followed by public DB plans, 3.4%, and Taft-Hartley DB plans, 3.3%.
For the quarter, the Russell 3000 stock index rose 4.9%, the Barclays Capital U.S. Aggregate bond index returned 2% and the MSCI ACWI ex-U.S. gained 5.2%.
The median gross return for all trust funds in the quarter was 10 basis points higher than the net. Public DB plans had the highest difference between net and gross returns in the quarter at 12 basis points, while corporate DB plans had the lowest, at five basis points.
However, over the five-year period, corporate DB plans had the highest differential between gross and net median returns at 70 basis points annually, while endowments and foundations — which invest heavily in alternative assets — had the smallest difference at 31 basis points.
Median allocations for all trust funds as of June 30 were unchanged from the prior quarter: U.S. equities (32.3%); fixed income (28.8%); international equity (15.6%); hedge funds (10%); real estate (8.7%); private equity (4.6%); and cash (1.1%).
The InvestorForce Plan Universes include more than 1,700 plans representing more than $1 trillion in assets.
