Endowments, foundations hit hardest in Q1

The median plan first-quarter return was -12.9% across InvestmentMetrics institutional investor universe. The less risk-adverse subset of endowments and foundations saw the most significant declines. As a whole, the group lost 14.77%, with foundations slightly lower at -14.84%. Corporate defined benefit plans, which are generally more bond heavy in their portfolios, were down about 8.2% on the quarter.

Public defined benefit plans, which made up about a third of universe assets, fell in the middle of the pack at -13.7%.

Equity allocations hurt the universe the most. The aggregate ex-U.S. equity position fell more than 24% over the first three months of the year, while only real estate and private equity were barely in the black. Those returns, however, likely contain lagged valuations that may not accurately reflect the downturn caused by the COVID-19 pandemic. Bond portfolios fell a modest 1.2%.