Wilshire Trust Universe Comparison Service(R) Sees Plan Returns Cool, Yet Deliver Third Positive Quarter in a Row

Small Plans Bested by Large Plans

Santa Monica, California, UNITED STATES

SANTA MONICA, Calif., May 5, 2014 (GLOBE NEWSWIRE) -- Contrary to last quarter, small plans underperformed large plans for the first quarter of 2014 which pulled the median return for all institutional assets tracked by the Wilshire Trust Universe Comparison Service® (Wilshire TUCS®) to a lackluster 1.66 percent median return. Wilshire TUCS, a cooperative effort between Wilshire Analytics, the investment technology unit of Wilshire Associates Incorporated (Wilshire®), and custodial organizations, is the most widely accepted benchmark for the performance and allocation of institutional assets and includes nearly 1,700 plans representing in excess of $3.5 trillion in assets.

"While this is the third positive quarter in a row, returns remain below the classic 1.82 percent or higher quarterly return target required for an annualized 7.5 percent return," stated Robert J. Waid, managing director, Wilshire Associates.

"In a quarter where the Wilshire 5000 Total Market IndexSM and Barclays U.S. Aggregate Index returns were similar, at 2.04 and 1.84 percent respectively, it wasn't surprising to see that overall plan returns were similar," Waid commented. "Taft-Harley Health and Welfare Funds was the lowest performing plan type for the third quarter in a row with a median return of 1.26 percent. Foundations and Endowments followed with a median return of 1.52 percent, while large Corporate Funds with assets greater than $1 billion delivered a high median return of 2.39 percent.

"Whereas large plan median returns outperformed the classic 60/40 portfolio, their small plan counterparts underperformed," Waid noted.

A chart of the Wilshire TUCS Plan Returns versus 60/40 First Quarter 2014 is available at http://media.globenewswire.com/cache/31/file/26187.pdf

"Corporate Funds delivered the largest size spread, with medians return for small versus large Corporate Funds of 1.71 and 2.39 percent, respectively," added Waid.

About Wilshire Associates

Wilshire Associates, a leading global, independent investment consulting and services firm, provides consulting services, analytics solutions and customized investment products to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets.

The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in 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 Wilshire 5000 Total Market IndexSM and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire has grown to a firm of more than 300 employees serving the investment needs of institutional clients around the world.

Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately US $7 trillion.* With ten offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Wilshire® and Trust Universe Comparison Service®, TUCS® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market IndexSM and Wilshire 4500 Completion IndexSM are service marks of Wilshire Associates Incorporated. Please visit http://www.wilshire.com/.

*Client assets are as represented by Pensions and Investments (detailed in "P&I's Top 1,000 Largest Retirement Plans" and "P&I's Largest Money Managers Directory 2013" as of 9/30/12 and 12/31/12, and published 2/4/13 and 5/27/13, respectively).

The data and charts in this article are copyrighted and owned by Wilshire Associates Incorporated.



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