Q210 TUCS Drops 4.7%

Master Trusts reversed course during the second quarter, falling 4.74% and resulting in a one-year return of 12.53% according to the Wilshire Trust Universe Comparison Service (TUCS).

A Wilshire news release said public plans underperformed the other plan sponsor types returning -5.38% for the quarter compared to Corporate plans at -4.84% and Endowments and Foundations at -4.75%. Public plans had the largest allocation to equity which had a negative quarter with the Wilshire 5000 returning -11.19% and the MSCI EAFE (net) returning -13.97%.

The Public Funds over One Billion bested the broad Public fund universe with the median returning -5.07% versus -5.38%. A similar pattern occurred in both the Corporate plan universe (large plans, -4.41%; broad, -4.84%) and the Endowment and Foundation universe (large plans, -3.52%; broad, -4.75%).

For both the quarter and the year, small capitalization portfolios outperformed their large cap counterparts within their respective Wilshire TUCS Equity Style medians. Within the large styles, Large Value managers outperformed Large Growth managers for the quarter ( -11.68% and -12.12%, respectively) and the year (15.69% and 12.35%, respectively), while within the small styles, it was Small Growth that outperformed for the quarter            (-8.79%) and Small Value that had the best showing for the year (28.27%).

With the falling bond yields last quarter, those managers with longer durations, Long Term Fixed Income managers, outperformed the Short Term Fixed Income managers 7.61% to 0.63%. The announcement said this phenomenon has persisted for the entire year ending June 2010 with Long Term managers returning 17.91% to the Short Term managers’ 3.24%. Although rather anemic for the quarter at 0.36%, High Yield managers also had an impressive year, returning a median of 22.06%.

Wilshire TUCS includes approximately 900 plans representing $2.6 trillion in assets.