This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Modest First Quarter Gains For Institutional Plan Sponsors

Positive gains across all asset classes helped institutional plan sponsors gain a median return of approximately 2 percent in the first quarter of 2014, according to Northern Trust Universe data.

The Northern Trust Universe tracks the performance of about 300 large U.S. institutional investment plans, with a combined asset value of approximately $899 billion, which subscribe to Northern Trust performance measurement services.

Institutional plans benefited from continued gains in domestic equity and fixed income, in addition to modest gains in the international equity and fixed income markets. Median returns in the first quarter were led by the corporate ERISA plans with a return of 2.8 percent. Public Funds followed next, netting a gain of 1.9 percent. Rounding out the top 3, Foundations & Endowments posted a return of 1.6 percent. Corporate ERISA plans recorded their third consecutive quarterly gain, while Public Funds and Foundations & Endowments generated positive returns for the seventh straight quarter.

“Compared to the fourth quarter of 2013, plan sponsors continued to see positive gains but at a slower rate. All asset classes saw positive returns, with private equity, real estate, and domestic fixed income performing the best,” said Bill Frieske, senior performance consultant, Northern Trust Investment Risk and Analytical Services. “Modest but sustained growth, especially in the equity and fixed income sectors globally, helped propel institutional plan sponsors to another positive quarter.”

Asset allocation per segment was as follows:
  • Public Funds were weighted towards U.S. equity (32.7 percent) and international equity (22.9 percent)
  • Foundations & Endowments were weighted towards private equity (23.3 percent) and U.S. equity (20.2 percent)
  • Corporate ERISA plans were weighted towards U.S. fixed income (36.8 percent) and U.S. equity (29.3 percent)

The U.S. fixed income and real estate sectors provided plan sponsors with modest gains in the first quarter. Overall, the best performing investment program in the Northern Trust Universe was the private equity program, which returned 4.2 percent in the quarter at the median. The median real estate investment program returned 2.8 percent, while the U.S. fixed income program returned 2.2 percent. Domestic equity, the largest asset class in most plans, returned 1.6 percent and international equity returned 0.6 percent.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs