Stocks, bonds help plans deliver robust returns – Wilshire TUCS

Institutional investors with large allocations to U.S. equities and fixed income saw strong median returns in the second quarter, data from Wilshire Advisors show.

Plans in the Wilshire Trust Universe Comparison Service posted median returns of 5.5% and 25.43% for the second quarter and year ended June 30, respectively. Wilshire previously reported median returns of 2.82% and 32.31% for the first quarter and year ended March 31, respectively.

"Most plans benefited from sizable allocations to U.S. equities, which continued to outperform foreign equities, as U.S. economic recovery has outpaced foreign economies on a year-to-date basis," said Jason Schwarz, president and chief operating officer of Wilshire Associates, in a news release. "Fixed-income allocations were also beneficial, as interest rates declined and corporate credit delivered strong performance."

Public pension plans posted the highest median return for the quarter ended June 30 in Wilshire's universe, at 5.75%, followed by foundations and endowments, at 5.64%, Taft-Hartley defined benefit plans, 5.63%; and corporate DB plans, 5.48%.

For the year ended June 30, public plans returned 26.97%; foundations and endowments, 26.4%; Taft-Hartley DB plans, 24.3%; and corporate DB plans, 17.86%.

By asset class, the Wilshire 5000 Total Market index returned 8.42% and 44.24% for the quarter and year ended June 30, respectively, and the MSCI ACWI ex-U.S. index posted quarterly and one-year returns of 5.48% and 35.72%, respectively. The Wilshire Bond index, meanwhile, returned a median 2.89% and 2.54% for quarter and year ended June 30, respectively.

Longer term, for the three, five and 10 years ended June 30, the TUCS universe respectively returned a median annualized 11.25%, 10.65% and 8.6%.