SANTA MONICA, Calif., Feb. 7, 2006 (PRIMEZONE) -- The 2005 median total returns of foundations and endowments topped both corporate and public pension plans with a gain of 8.67 percent, according to the Trust Universe Comparison Service(r) (TUCS)(r), a cooperative effort between Wilshire Analytics, the investment technology unit of Wilshire Associates, and custodial organizations.
The median performance of corporate pension plans was up 7.63 percent in 2005 while public pension funds gained slightly less at 7.55 percent. With approximately 335 plan participants representing approximately $2.3 trillion in assets, TUCS is the most widely accepted benchmark for the performance of institutional assets and includes data from corporate and public plans as well as endowments and foundations.
The fourth-quarter performance for foundations and endowments was 2.53 percent while public and corporate pension funds were up 2.28 percent and 2.17 percent, respectively. The median performance of all master trusts during the quarter was 2.25 percent with the annual performance at 7.61 percent. This compares to the U.S. equity markets which posted a solid fourth-quarter gain of 2.21%, as the Dow Jones Wilshire 5000 finished the year with a respectable 6.38% return for 2005.
For those plans with assets greater than $1 billion, all master trusts had a median rate of return of 8.33 percent for the year and 2.43 percent for the quarter. Public funds showed a median increase of 7.9 percent for the year and 2.36 percent for the quarter. Corporate funds performance exceeded that of public funds with an increase of 8.58 percent in 2005 and 2.59 percent during the quarter. During the past year, the median performance for foundations and endowments with assets greater than $1 billion was 8.63 percent, with a quarterly gain of 2.53 percent.
TUCS reports the median rates of return and median asset allocation for the time periods ending December 31, 2005 as follows (returns for periods greater than one year are annualized).
WILSHIRE TUCS/Add 1
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PERFORMANCE ASSET ALLOCATION
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All Master Trusts
One Quarter = 2.25% Equities = 62.84%
One Year = 7.61 Bonds = 26.03
Three Years = 13.87 Cash = 3.00
Convertibles = 0.00
GIC/GAC = 0.00
Real Estate 0.00
Venture Capital = 1.23
Other = 0.00
Corporate Funds
One Quarter = 2.17% Equities = 63.12%
One Year = 7.63 Bonds = 27.78
Three Years = 14.09 Cash = 3.06
Convertibles = 0.00
GIC/GAC = 0.00
Real Estate 0.00
Venture Capital = 0.10
Other = 0.00
Public Funds
One Quarter = 2.28% Equities = 61.99%
One Year = 7.55 Bonds = 26.90
Three Years = 13.76 Cash = 3.03
Convertibles = 0.00
GIC/GAC = 0.00
Real Estate 0.19
Venture Capital = 1.32
Other = 0.00
Foundations and Endowments
One Quarter = 2.53% Equities = 64.24%
One Year = 8.67 Bonds = 15.87
Three Years = 14.51 Cash = 2.99
Convertibles = 0.00
GIC/GAC = 0.00
Real Estate = 0.00
Venture Capital = 11.68
Other = 0.00
All Master Trusts with Assets Greater than $1 billion
One Quarter = 2.43% Equities = 61.60%
One Year = 8.33 Bonds = 25.92
Three Years = 14.49 Cash = 3.73
Convertibles = 0.01
GIC/GAC = 0.00
Real Estate 1.16
Venture Capital = 2.84
Other = 0.00
Corporate Funds with Assets Greater than $1 billion
One Quarter = 2.59% Equities = 62.42%
One Year = 8.58 Bonds = 27.78
Three Years = 14.52 Cash = 4.02
Convertibles = 0.01
GIC/GAC = 0.00
Real Estate 1.67
Venture Capital = 2.97
Other = 0.00
Public Funds with Assets Greater than $1 billion
One Quarter = 2.36% Equities = 61.87%
One Year = 7.9 Bonds = 25.92
Three Years = 14.05 Cash = 3.27
Convertibles = 0.00
GIC/GAC = 0.0
Real Estate 0.77
Venture Capital = 2.72
Other = 0.00
Foundations and Endowments with Assets Greater than $1 billion
One Quarter = 2.53% Equities = 60.83%
One Year = 8.63 Bonds = 18.50
Three Years = 14.75 Cash = 4.15
Convertibles = N/A
GIC/GAC = N/A
Real Estate = 0.37
Venture Capital = 11.41
Other = N/A
About Wilshire Associates
Wilshire Associates is a leading global investment technology, investment consulting and investment management firm with four business units, including: Wilshire Analytics, Wilshire Funds Management, Wilshire Consulting, and Wilshire Private Markets. Wilshire Analytics develops and provides superior risk management, portfolio analysis, asset allocation and performance measurement solutions to fund managers, banks, insurers, consultants and other institutional investment organizations around the world.
The firm was founded in 1972, revolutionizing the industry by pioneering the application of investment analytics and research to investment management for the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire's strong analytics foundation. Wilshire developed the index now known as the Dow Jones Wilshire 5000(sm) Composite Index, the first asset/liability models for pension funds, the first U.S. equity style metrics work and many other "firsts" as the firm grew to more than 300 employees serving the investment needs of institutional and high net worth clients around the world.
Based in Santa Monica, Calif., Wilshire provides services to clients in more than 20 countries representing in excess of 600 organizations with assets totaling more than US $12.5 trillion. With eight offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. The Dow Jones Wilshire 5000(sm) Composite Index is calculated and distributed by Dow Jones Indexes pursuant to an agreement between Dow Jones & Company, Inc. and Wilshire Associates Incorporated. Trust Universe Comparison Service(r) and TUCS(r) are registered service marks of Wilshire Associates Incorporated, Santa Monica, California. Please visit www.wilshire.com for more information.