Pension funds rebound after long stretch of negative returns
Defined benefit plans in the Investment Metrics Plan Sponsor Universes posted a median net return of 5.39% for the fourth quarter 2022. Performance rebounded after three consecutive quarters with negative returns to start the year. The median net return for the calendar year 2022 was -14.1%, the worst calendar year return since 2008.
Endowments & Foundations had the best relative performance compared other plans, with a median net return of 6.37%. Health & Welfare plans delivered the poorest performance for the quarter, with a median net return of 3.18%.
Investment Metrics Plan Universe is the industry’s most granular analytics tool for plan sponsors including standard and custom peer group comparisons of performance, risk, and asset allocations by plan type and size. The data is sourced directly from over 4,000 institutions using our reporting and analytics solutions including investment consultants, advisors and asset owners. Plan Universe is updated quarterly typically available on or near the following schedule: preliminary data available on the 14th business day after quarter end, a second cut on the 21st business day and final cut on the 29th business day.
Preliminary Peer Group Size:
All Defined Benefit: 654, Corporate: 164, Public: 240, Taft-Hartley: 196, End. & Fnd: 670, Health & Welfare: 183
Disclaimer
The material presented in this document is an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or any issuer or security or similar.
This document contains general information only, does not consider an individual’s financial circumstances and should not be relied upon for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should always be given to consult a Financial Advisor before making an investment decision.
Investment Metrics, a Confluence company, does not provide investment advice and nothing in this document should be considered any form of advice. Investment Metrics accepts no liability whatsoever for any information provided or inferred in this document.
