Wilshire Trust Universe Comparison Service® Reports 2018 Returns across All Plans as Worst since the Financial Crisis

— Equity Exposure Drags Performance Down, 60/40 Portfolio
Underperforms Most Plan Types —

SANTA MONICA, Calif.–(BUSINESS WIRE)–Institutional assets tracked by Wilshire Trust Universe Comparison
Service® (Wilshire TUCS®) posted all-plan median
returns of -7.05 and -4.05 percent for fourth quarter and the year
ending December 31, 2018, respectively. Wilshire TUCS, a cooperative
effort between Wilshire Analytics, the investment technology foundation
of Wilshire Associates Incorporated (Wilshire®), and
custodial organizations is widely considered the definitive benchmark
for U.S. institutional plan assets performance and allocation.


A weak first half of the year combined with dismal fourth quarter
performance, the worst since third quarter 2011 fell -8.53 percent
translated to the worst year since the 2008 Financial Crisis, when plans
fell -24.79 percent.

“Equity exposure weighed on plan performance in the fourth quarter, as
geopolitical concerns, earnings revisions, and higher interests rates
led to a deterioration in investor sentiment,” said Jason Schwarz,
president, Wilshire Analytics and Wilshire Funds Management.

U.S. equities, represented by the Wilshire 5000 Total Market Index,
fell -14.29 and -5.27 percent fourth quarter and for the year,
respectively; and, international equities, represented by the MSCI AC
World ex U.S., also fell -11.46 and -14.20 percent fourth quarter and
for the year, respectively. U.S. bonds, represented by the Wilshire Bond
Index, increased slightly fourth quarter with a gain of 0.86
but fell -0.76 percent for the quarter and year, respectively.

Median ranges across plan types for the quarter spanned losses from
-7.61 to -4.59 percent for Taft Hartley defined benefit and large
corporate (assets above $1 billion) plans, respectively. One-year
medians ranged from a -4.48 percent loss to 0.88 percent gain for
foundations and endowments, and for large foundations and endowments
(assets above $500 million), respectively.

For the quarter, all plan types except small public plans outperformed
the 60/40 portfolio, which lost -8.23 fourth quarter.

In 2018, both large public plans and foundations and endowments
outperformed the 60/40 portfolio, which lost -3.47 percent. For both the
quarter and year, large plans outperformed small across all types due to
greater non-equity exposure, while large foundations and endowments
continued significant alternatives exposure fourth quarter with a median
39.84 percent.

Large plans (assets above $1 billion) posted median losses of -5.56 and
-2.90 percent for the quarter and year ending December 31, respectively;
meanwhile, small plans (assets less than $1 billion), underperformed
large for the quarter and year at -7.61 and -4.46 percent, respectively.

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

About Wilshire Associates

Wilshire Associates, a leading global financial services firm, provides
consulting services, analytics solutions and customized investment
solutions 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
Index 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 approximately 270 employees serving the needs of
investors 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 $9
trillion.* With ten offices worldwide, Wilshire Associates and its
affiliates are dedicated to providing clients with the highest quality
products and services. Wilshire® and Wilshire 5000® are registered
service marks of Wilshire Associates Incorporated. Wilshire 5000 Total
Market Index℠ is a service mark of Wilshire Associates Incorporated.

Please visit www.wilshire.com
Twitter:
@WilshireAssoc

*Client assets are as represented by Pensions & Investments (P&I),
detailed in P&I’s “Largest Retirement Funds” and P&I’s “Largest Money
Managers (U.S. institutional tax-exempt assets)” as of 9/30/17 and
12/31/17, and published 2/5/18 and 5/28/18, respectively.

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

Contacts

Lisa Herbert
+1-310-899-5325
lherbert@wilshire.com

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