Most US institutional investment plan sponsors saw solid returns for the third quarter of 2006, according to data from Northern Trust, which tracks the results of more than 300 institutional investment plans.
“US institutional plans posted encouraging returns for the third quarter, re-bounding from the disappointing results of last quarter,” says Joe Nardulli, product manager for Northern Trust Investment Risk & Analytical Services.
The data showed corporate and public fund plans gained 3.8 per cent and 3.7 per cent, respectively, while foundation and endowment plans both saw returns of 3.2 percent. Over a five year period, the median public fund returned 9.8 percent and the corporate and foundation and endowment plans returned 9.4 percent.
“The plan returns were on par with the gains made by the broad market equity indexes,” adds Nardulli. “Large cap stocks led the way this quarter, with the Northern Trust large cap universe returning 4.5 percent at median for the quarter compared to – 0.4 percent and 0.0 percent returns at median for the mid cap and small cap universes, respectively.”
The third quarter results drove the median year-to-date return to 7.4 percent, doubling the previous quarters return.