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)
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts