Press release
Northern Trust Universe Data: Equity Markets Drive Strong Second Quarter Results for Institutional Investors
CHICAGO--(BUSINESS WIRE)-- Market volatility, shifting economic policy and resurgent investor confidence defined the second quarter of 2025, delivering the
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nMarket volatility, shifting economic policy and resurgent investor confidence defined the second quarter of 2025, delivering the best quarterly results for U.S. equities in five years and supporting institutional investment plan performance. The Northern Trust All Funds Over $100 Million plan universe had a median return of 4.9% for the quarter.\n\n\nThe Northern Trust Universe tracks the performance of 370 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings.\n\n\nInvestment performance was broadly positive but varied across institutional segments, with the Northern Trust Corporate (ERISA) universe returning 3.2% at the median for the quarter while the Northern Trust Public Funds universe median return was 4.9% and Northern Trust Foundation and Endowment (F&E) universe produced a 5.1% median return.\n\n\nU.S. equity performance was notably volatile in the second quarter, falling 12% during the first eight days of April, only to stage a remarkable 20% rebound, propelling major indices to record highs by quarter’s end. Investor excitement around the rapid advancement of artificial intelligence (AI) proved a key driver of performance, contributing to the strongest quarterly equity returns since the post-pandemic surge in Q2 2020, when the S&P 500 returned over 20%.\n\n\nJohn Turney, Global Head of Total Portfolio Solutions, Northern Trust Asset Servicing, said: “This quarter’s results showcase the resilience of diversified portfolios and the steadfast confidence of institutional investors, even amid shifting economic headwinds. As innovation and adaptability continue to shape global markets, our clients are well-positioned to seize emerging opportunities while managing risk.”\n\n\nU.S. fixed income produced positive returns as well, with the Northern Trust U.S. Fixed Income program universe median return at 1.3% for the quarter. Inflation remained contained, and the U.S. Federal Reserve opted to hold rates steady for the quarter. Yields on short-term bonds declined as the market priced in a delay to anticipated rate cuts. The European Central Bank lowered interest rates by 25 basis points in June, aiding strong returns overseas.\n\n\nThe ERISA plan one,...