The median return for plans in the Wilshire Trust Universe Comparison Service (TUCS) was 6% in 2014—making it the sixth consecutive year of positive returns.
All plan types had a median return of 1.70% in the fourth quarter of 2014. Robert J. Waid, managing director at Wilshire Associates, said, “Similar to 2013, U.S. Equities trumped all other asset classes in the 2014 fourth quarter and full year. The exception for 2014 was the U.S. real estate asset class, with the Wilshire U.S. RESI gaining 15.05% and 31.53% for the quarter and year, respectively. The Wilshire 5000 Total Market Index was up 5.26% and 12.74%, respectively, during the fourth quarter and in 2014.”
For bonds, Waid added that the Barclays U.S. Aggregate had gains for the fourth quarter and year of 1.79% and 5.97%, respectively. “This translates to a small range of plan returns with a low of 1.24% for Taft Harley Health and Welfare Funds and a high of 2.14% for Corporate Funds for the quarter. The spread for 2014 returns was also small, with a low of 4.78% for Taft Harley Health and Welfare Funds and a high of 6.92% for Corporate Funds,” he said.
Corporate funds’ median asset allocation was:
- U.S. Equities – 30.70%;
- Intl Equities – 8.30%;
- U.S. Bonds – 42.78%; and
- Cash – 2.55%.
For public funds, the median asset allocation was:
- U.S. Equities – 45.40%;
- Intl Equities – 12.97%;
- U.S. Bonds – 25.37%;
- Cash – 2.94%;
- Real Estate – 4.14%; and
- Alternative Investments – 0.70%.