MSCI’s InvestorForce Plan Universes rose modestly during the first quarter as falling interest rates boosted institutional portfolios.
The funds had a median net return of 1.18% in the first quarter.
The median return gross of fees for all plans was 1.27% in the three months ended March 31.
Annualized net returns for the one-, three- and five-year periods ended March 31 were -1.75%, 4.67% and 5.4%, respectively.
Corporate defined benefit plans fared the best among investor types during the quarter, posting a median return of 2.04%, net of fees. Public pension funds were next at 1.22%, followed by Taft-Hartley DB plans, with a median net return of 0.79%.
InvestorForce data show that endowments and foundations fared the worst during the quarter, with a median net return of 0.79%.
The Russell 3000 rose 0.95% in the first quarter, and the MSCI ACWI ex-U.S. dropped 0.27%.
Corporate pension plans benefited from their derisking profiles as the Barclays Capital U.S. Government/Credit index rose 3.47% during the quarter.
The median allocation for all trust funds as of March 31 was 29.59% fixed income, 28.53% U.S. equities, 13.99% international equity, 9.12% hedge funds, 7.13% real estate (includes both private and public real estate investments), 5.97% private equity and 1.06% cash. Median values do not add up to 100%.
MSCI’s InvestorForce Plan Universes include more than 1,900 plans representing more than $2.5 trillion in assets.