Get more! Sign up for PLANSPONSOR newsletters.
Mercer: 1Q06 Kind to Institutional Players
A Mercer IC news release reported that the median corporate plan bulled ahead in the January to March period by 4.5% while public plans and foundation/endowment funds gained 5% and 5.1%, respectively.
On a one-year basis, corporate plans had average gains of
13.9%, while public plans and foundation/endowment plans
both earned 15%. Over a 10-year time frame, all three plan
types have averaged between 9.1% and 9.9% on an annualized
basis, Mercer IC data showed.
According to Mercer IC’s analysis, both value and
growth managers produced positive results during the first
quarter, with the median large-cap value manager
outperforming its growth-oriented counterparts by 160 basis
points. Meanwhile, the median large-cap manager
outperformed the S&P 500 Index for the first quarter by
20 basis points, and bested the index by 140 basis points
on an annualized basis over the last 10 years. Small-cap
managers outperformed their large-cap counterparts by 830
basis points over the first quarter of 2006.
The median small-cap manager gained 12.7% while the median large-cap manager gained 4.4%. The international equity asset class, as represented by the MSCI EAFE Index, was ahead 9.4%, outperforming its US large-cap counterpart for the quarter by a margin of 520 basis points and for the year by 1,270 basis points, the data showed.
Turning to the international asset class, the growth style benchmark underperformed value by 110 basis points, yet the median value and growth managers whose performance was analyzed by Mercer IC were only 20 basis points apart.
In the fixed income arena, the median core fixed income
manager outperformed the Lehman Brothers Aggregate Index in
the first quarter by 20 basis points and on a one-year
basis by 40 basis points. Over a 10-year period, the median
manager has pulled ahead of the index by 30 basis
points.
Core opportunistic managers outperformed the Lehman
Brothers Index by 30 basis points during the quarter and by
70 basis points on a one-year basis. The median high-yield
manager posted a gain of 2.7% for the quarter.
In assessing international fixed income performance, the
median non-US manager had a quarterly gain of 0.2% while
the median global manager was flat. Over a 10-year period,
the median managers in both universes outperformed their
respective benchmarks, Mercer IC said.
You Might Also Like:
DOL Prevails in Court Orders, Removing TPA From Acting as Fiduciary for Sponsors
Newport Group to Acquire Part of Evercore's Trust Business
The institutional trust and fiduciary business of Evercore's subsidiary Evercore Trust Company will become part of Newport Group.
Investment Products and Services
« Monster Launches Informational Site on Human Capital Issues