US Institutional Investment Plan Sponsors Posted Solid Gains In Third Quarter

Northern Trust Company, a provider of global custody, asset administration and investment management services, announced that most U.S. institutional investment plan sponsors posted solid gains for the third quarter. The Northern Trust represents the performance results of more than 300

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Northern Trust Company, a provider of global custody, asset administration and investment management services, announced that most U.S. institutional investment plan sponsors posted solid gains for the third quarter.

The Northern Trust represents the performance results of more than 300 large institutional investment plans, which have a combined asset value of $390 billion.

The report found US institutional plans were slightly ahead of the overall US stock market for the period. ERISA and public fund plans had median returns of 4.2% and 4.1%, respectively. Foundations and endowment plans gained 4.4% at the median. All plans posted positive performance for the period.

“Strong gains in both domestic and international equity markets boosted institutional fund performance in the quarter,” said Joe Nardulli, product manager of Northern Trust investment risk and analytical services.

The MSCI EAFE index returned more than 10% for the quarter and all U.S. broad market indexes gained at least 3%. Nardulli predicted the equity portion of virtually all plans was the driving force behind the solid gains.

Total equity programs for all plans posted 6.1% at the median.

During the last year, ERISA and public fund plans returned 14.1% and 14.5%, respectively, at the median. Foundations and endowments returned 14.7% over the same time period.

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