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Foundations and endowments suffer in Q3

By NexChange
Asset Management


Foundations and endowments returned -5.23% in the third quarter, the worst performing quarter in four years.

Trusts in the 1,500 plan Wilshire Trust universe had a median -4.53% return in the third quarter, down from -0.04% in the second quarter, reports Pensions & Investments. Foundations and endowments were hit the hardest, while Taft-Hartley health and welfare plans performed the best of the group, returning a median -2.79%.

Corporate defined benefit plans returned -3.62% and public defined benefit plans returned -4.81%. Taft-Hartley DB plans suffered with -4.81% returns.

The second and third quarter of 2015 are the first consecutive negative quarters since 2008 and 2009.

The fall in global equities hit all the plans last quarter. Foundations and endowments had average domestic equity allocations of 32.23% and international equity of 12.96%. These investors have had a median return of -1.37%  for the 12 months ending in September.

Taft-Hartley health and welfare funds though are notoriously conservative, holding a medium U.S. bond allocation of 56.28%. These funds have also performed the best in the 12 months ending in September, with a median return of 0.43%.


Photo: Emery Way 

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