Market Overview

Northern Trust Universe Data: Modest Gains for Institutional Plan Sponsors in Second Quarter of 2018


Institutional plan sponsors saw investment performance rebound to
positive territory in the second quarter of 2018, according to Northern
Trust Universe data released today. The median gain of 0.9 percent for
institutional asset owners followed the first negative quarter for the
Universe in more than two years.

The Northern Trust Universe tracks the performance of approximately 300
large U.S. institutional investment plans, with a combined asset value
of approximately $985 billion, which subscribe to performance
measurement services as part of Northern Trust's asset servicing

"Equity markets snapped back in the second quarter, driving overall
performance for institutional plans," said Mark Bovier, regional head of Investment
Risk and Analytical Services
at Northern Trust. "Stocks are a core
holding for most plans, and publicly-traded equity programs returned
about 3.9 percent at the median in the second quarter, up from negative
0.3 percent in the prior quarter. Private equity, real estate and hedge
funds also contributed to quarterly gains for plans in the Universe."

Foundations & Endowments had the strongest performance in the second
quarter, with the median F&E plan in the Northern Trust Universe gaining
1.2 percent in the quarter. The median Public Fund gained 1.1 percent in
the second quarter, while the median Corporate ERISA plan edged up 0.3

"F&E plans were buoyed by large allocations to alternative assets, as
the median private equity program gained 2.8 percent in the second
quarter, while real estate and hedge funds were up a more modest 1.9
percent and 1.0 percent respectively," said Bill Frieske, senior
investment performance consultant, Investment Risk and Analytical
Services. "Public Funds tend to have the largest allocation to domestic
equities, which helped in the second quarter. ERISA results were weighed
down by their larger allocation to fixed income, particularly
longer-duration bonds, which had a negative quarter."

Longer-term returns in the Northern Trust Universe as of June 30, 2018


1 Yr


3 Yr



5 Yr

ERISA 6.3% 6.8% 7.9%
Public Funds 8.5% 7.1% 8.4%
Foundations & Endowments 8.7% 6.7% 7.8%

About Northern Trust

Northern Trust Corporation (NASDAQ:NTRS) is a leading provider of
wealth management, asset servicing, asset management and banking to
corporations, institutions, affluent families and individuals. Founded
in Chicago in 1889, Northern Trust has offices in the United States in
19 states and Washington, D.C., and 23 international locations in
Canada, Europe, the Middle East and the Asia-Pacific region. As of June
30, 2018, Northern Trust had assets under custody/administration of
US$10.7 trillion, and assets under management of US$1.1 trillion. For
more than 125 years, Northern Trust has earned distinction as an
industry leader for exceptional service, financial expertise, integrity
and innovation. Visit
or follow us on Twitter @NorthernTrust.

Northern Trust Corporation, Head Office: 50 South La Salle Street,
Chicago, Illinois 60603 U.S.A., incorporated with limited liability in
the U.S. Global legal and regulatory information can be found at

View Comments and Join the Discussion!