Most U.S. institutional investment plan sponsors posted modest gains for the second quarter of 2005, according to data in the Northern Trust Universe.
The Northern Trust Universe represents the performance results of more than 300 large institutional investment plans that subscribe to Northern Trust performance measurement services. These plans, with a combined asset value of $390 billion, represent a broad snapshot of overall institutional investment plan performance.
“US institutional plans posted moderate gains in the second quarter,” said Joe Nardulli, Product Manager, Northern Trust Investment Risk and Analytic Services. “ERISA and public fund plans had median returns of 2.3% and 2.4% respectively. Foundations and endowment plans gained 2.0% at the median. All plans posted positive performance for the period.”
“Both US fixed income and domestic equity posted solid gains for the quarter, and the quarter’s growth helped reverse the downturn of the first quarter,” said Nardulli. “The US equity portion of virtually all plans rebounded after struggling in the first quarter. US equity programs kept pace with the market, returning 2.4% at the median. ERISA and public fund plans benefited from a higher strategic allocation to US Fixed Income, relative to foundation and endowment plans.”
Over a one-year period, ERISA plans returned 9.8% at the median versus 7.4% for last quarter’s one-year return. Public funds returned 10.4% versus 7.7% last quarter, and foundations and endowments returned 9.6% versus 7.9% last quarter. The median ERISA plan returned 10.0% over three years and 3.5% over five years. Public funds and foundations and endowments returned 10.4% and 10.1%, respectively over three years and 4.1% and 4.0% over five years.
For more information on the these results, the Northern Trust Universe, or Northern Trust’s Investment Risk Analytic Services, please contact Paul D’ouville, Senior Vice President, Northern Trust Investment Risk Analytic Services, at (312) 557-1716.