Institutional Plans Gain Almost 4% on Average in 3Q06

November 15, 2006 ( - Mercer IC's Summary Performance of US Institutional Portfolios survey found the median corporate plan had a third-quarter gain of 3.9%, while public plans and foundation/endowment funds gained 3.9% and 3.5%, respectively.

For the year-to-date, corporate plans had average gains of 9.7%, public plans earned 10.4%, and foundation/endowment plans earned 10%, according to a Mercer IC press release.

Mercer IC data showed both value and growth managers produced positive results during the third quarter. The median large-cap value manager outperformed growth-oriented counterparts by 240 basis points, but underperformed the S&P 500 Index for the third quarter by 60 basis points. Small-cap managers underperformed their large-cap counterparts by 550 basis points over the current quarter, the news release said. The median small-cap manager lost 0.4% and the median large-cap manager gained 5.1%.

The international equity asset class, represented by the MSCI EAFE Index gained 3.9%, underperformed its US large-cap counterpart for the quarter by a margin of 180 basis points. Within the international asset class, the value style benchmark outperformed growth by 250 basis points, and the median value manager outperformed growth counterparts by 180 basis points.

Within the fixed income asset class, the median core fixed income manager equaled the Lehman Brothers Aggregate Index in the third quarter and outperformed the index on a one-year basis by 30 basis points, the Mercer IC survey showed. Similarly, core opportunistic managers equaled the performance of the Lehman Brothers Index during the quarter and outperformed the index by 40 basis points on a one-year basis. The median high-yield manager posted a 3.6% return for the quarter.

International fixed income performance data showed the median non-US manager had a quarterly gain of 0.9% while the median global manager gained 1.4%.

Summary Performance of US Institutional Portfolios may be downloaded free of charge from .