October 2024

Q3 Preliminary Plan
Universe Performance

October 24th, 2024

by:

Brendan Cooper
Head of Client Consulting & Research

Plan Universe Performance

During the third quarter of 2024, global equity markets posted another positive quarter, with the MSCI ACWI Index returning 6.72%. Year-to-date, global equity markets have been strong, with the MSCI ACWI Index returning 19.08%. Equity markets have been led by U.S. large cap stocks, with the Russell 1000 Index returning 21.18% compared to the MSCI EAFE Index return of 13.5%. Within fixed income, the U.S. Bloomberg Aggregate Index returned 4.45% year to date, while the Bloomberg U.S. Short-Term Treasury Index returned 4.08%.

The Confluence All Defined Benefit Plan Sponsor Universe posted a median net return of 5.51% for the quarter and 11.38% year to date. Though median performance for all plan types was positive during the quarter, all defined benefit plans underperformed a traditional 60/40 benchmark return of 6.11%. (60% MSCI ACWI Index/ 40% Bloomberg Barclays U.S. Aggregate Index.)

All Defined Benefit: 525, Corporate: 90, Public: 247, Taft-Hartley: 133, End. & Fnd: 696, Health & Welfare: 106

Figure 1: Preliminary median performance by plan type, Q3 2024.
Source: Plan Universe Confluence

Public Defined Benefit and Endowment & Foundation plans had the strongest performance year to date, driven by their high (compared to other plans) exposure to equity, the top-performing asset class. As Figure 2 highlights, the year-to-date median equity return across all defined benefit plans was 17.76%, outperforming other asset classes.

Figure 2: Preliminary median performance by asset class, Q3 2024.
Source: Plan Universe Confluence

Confluence Plan Universe

Confluence 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 and 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, the data includes 20+ years’ history on:


  • Trust Funds, Corporates, Public Plans, Taft-Hartley, Endowments & Foundations, High Net Worth, Health & Welfare, and custom groups.

  • Asset Allocations broken into equity (US, global, global ex-US), fixed income (US, global, and global ex-US), alternatives, real estate (public and private), multi-asset and cash. Emerging Markets allocations are available for equities and debt securities.

  • Net and gross performances displayed by quartile with full percentiles via download.

  • With all information aggregated by Plan Size.
Disclaimer

The information contained in this communication is for informational purposes only. Confluence, is not providing legal, financial, accounting, compliance or other similar services or advice through this communication. Recipients of this communication are responsible for understanding the regulatory and legal requirements applicable to their business.

About Confluence

Confluence is a global leader in enterprise data and software solutions for regulatory, analytics, and investor communications. Our best-of-breed solutions make it easy and fast to create, share, and operationalize mission-critical reporting and actionable insights essential to the investment management industry. Trusted for over 30 years by the largest asset service providers, asset managers, asset owners, and investment consultants worldwide, our global team of regulatory and analytics experts delivers forward-looking innovations and market-leading solutions, adding efficiency, speed, and accuracy to everything we do. Headquartered in Pittsburgh, PA, with ~700+ employees across North America, the United Kingdom, Europe, South Africa, and Australia, Confluence services over 1,000 clients in more than 40 countries. For more information, visit www.confluence.com