Press release
Northern Trust Universe Data: Diminishing Recession Concerns Bring Positive Results in the First Quarter
CHICAGO--(BUSINESS WIRE)-- Global financial markets posted positive results during the first quarter of 2023, driven by diminishing concerns regarding a
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nGlobal financial markets posted positive results during the first quarter of 2023, driven by diminishing concerns regarding a potential recession, the reopening of China’s economy and falling energy costs. The median return for institutional asset owners included in the Northern Trust All Funds Over $100 million plan universe was 4.1% for the quarter ending March 31, 2023.\n\n\nThe Northern Trust Universe tracks the performance of more than 400 large U.S. institutional investment plans, with a combined asset value of more than $1.3 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings.\n\n\nThe Northern Trust Corporate (ERISA) universe median return for the quarter was 5.0%. The Northern Trust Public Funds universe median returned 3.5% while the Northern Trust Foundation and Endowment (F&E) universe produced a 3.4% median return for the quarter.\n\n\n“The Federal Reserve increased the Fed Funds rate twice during the quarter, at a reduced rate of 25 basis points relative to increases during last year. This led to renewed investor optimism that inflation may be receding,” said Amy Garrigues, global head of Investment Risk and Analytical Services at Northern Trust. “This, combined with China’s reopening and falling energy prices, allowed global markets to post positive results for the quarter.”\n\n\nThe Northern Trust U.S. equity program universe generated a 7.3% median return for the first quarter. Large cap stocks continued to outperform small cap stocks in the quarter, with the Russell 1000 large cap index up 7.5% and the Russell 2000 small cap index returning 2.7% for the three-month period. Bond yields fell during the quarter, leading to positive returns for the fixed income asset class. The Northern Trust U.S. Fixed Income program universe median return was 3.1% for the quarter.\n\n\nERISA plan universe median one-, three- and five-years returns were -8.2%, 5.4% and 4.1% respectively. The U.S. fixed income asset class remains the largest holding in ERISA plans, with a median allocation of 50.3%. The median allocation to US equity was 21.4%.\n\n\nPublic Funds universe median multi-period returns for the one-, three- and five-year periods stand at -3.6%, 11.1% and 5.7% respectively. The median first quarter allocations to U.S. and interna...