US pension funds see red in Q2

While the median performance of all master trusts during the quarter was a poor -0.92%, things looked better over the longer period with one-year performance at a healthy 9.28%.

But the most interesting development was the reversal of fortunes between the corporate and public pension plans. According to TUCS, the median performance of corporate pension plans was 7.63% in 2005, compared to 7.55% for public pension funds.But six months later, it was the public plans with -0.90% for the quarter and 9.44% for the year ending June 30 that came out on top of corporate pension plans, with -0.94% for Q2 and 9.14% for the year.

Hilarie Green, CFA, managing director of Wilshire Analytics’ Performance Reporting division said of the results: “With the large range in returns between asset classes for the one-year period, even slight asset allocation differences made a large contribution to the total return differences between sponsor types.

TUCS is a co-operative effort between Wilshire Analytics, and custodial organisations, and includes plans representing approximately US$2.7trn in assets.By Damian Clarkson

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