According to Northern Trust, Corporate Employee Retirement Income Security Act (ERISA) pension plans had the best first quarter on a relative basis, while the Wilshire Trust Universe Comparison Service shows Taft Hartley defined benefit (DB) plans, which had the largest allocation to U.S. equities, posted the highest Q1 gain.
Tag: foundations and endowments
“Equity exposure weighed on plan performance in the fourth quarter,” says Jason Schwarz, president, Wilshire Analytics and Wilshire Funds Management.
“Fixed income was something of a safe harbor in the fourth quarter, and Corporate ERISA plans benefited from larger allocations to bonds,” says Bill Frieske, with Northern Trust.
The Endowment Index represents a benchmark for analyzing the investable opportunity of managers of portfolios utilizing the “Endowment Investment Philosophy” or who “otherwise incorporate alternative investments within a comprehensive asset allocation.”
Despite investing towards return goals in the 5% to 8% range, many endowments and foundations surveyed by CAPTRUST say they are unwilling or unable to withstand significant volatility.
Institutional assets tracked by Wilshire Trust Universe Comparison Service (Wilshire TUCS) posted an all-plan median return of 0.88% for second quarter.
Wilshire TUCS first quarter returns were weighed down by losses across all major asset classes.
The Wilshire Trust Universe Comparison Service (Wilshire TUCS) saw a median one-year gain for all plan types of 14.72%.
A relatively large allocation to international equities in Public Funds helped them beat out returns for Corporate ERISA plans and Foundations & Endowments, according to Northern Trust.