US institutional investment plan sponsors in the Northern Trust Universe had their fourth consecutive quarter of positive results in the second quarter of 2011, with plans gaining 1.2% at the median.
The Northern Trust Universe represents the performance of about 300 large institutional investment plans, with a combined asset value of about $839.2 billion, which subscribe to Northern Trust performance measurement services.
The gains keep coming for US plan sponsors, and while results were modest for the quarter, the median plan had strong double-digit returns over the past year, says William Frieske, senior performance consultant for Northern Trust Investment Risk & Analytical Services. Many public funds gained more than 20% in the 12 months ending June 30the end of the fiscal year for those public employee pension plans.
In the second quarter, corporate pension plans had a median return of 1.4%, while public funds returned 1.3% and foundations and endowments gained 1.1% at the median. Public funds led the way in 12-month returns, gaining 22.2% at the median. The median one-year return was 20.8% for corporate pensions and 20.3% for foundations and endowments.
US equities, a core holding for US institutional plans, held back performance in the second quarter, with the S&P 500 Index gaining just 0.1% in that period. The top performing listed asset class was US fixed income, with the BlackRock US Aggregate Index up 2.3% on the quarter, and international equity, as measured by the MSCI EAFE Index, gained 1.8%. In unlisted assets, private equity programs in the Northern Trust Universe generated 5.7% gains in the second quarter, while hedge fund programs returned about 1%.
(CM)