Salient to Investors:

Wilshire Associates said:

  • Big government-employee pensions reported median returns of 13.43 percent in 2012 versus 12.47 percent for funds with over under$1 billion in assets. State and local pensions with under $1 billion of assets had a median allocation of 10.6 percent in international stocks and zero in alternative investments versus 22.3 percent and 9.6 percent respectively for those with over $5 billion. Robert Waid at Wilshire said the outperformance was due to ability to diversify and reduce risk by investing in other classes, such as international stocks and alternatives, versus traditional US equity and US bonds.
  • For the 10-years through 2012, public pensions with over $5 billion had a median return of 7.96 percent versus 7.36 percent for all public funds, while foundations and endowments with over $500 million had the best 10-year median return at 8.22 percent.

Read the full article at http://www.bloomberg.com/news/2013-02-04/-mega-public-pensions-beat-small-funds-in-2012-wilshire.html

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