Press release
Northern Trust Universe Data: Global Equity Markets Drive Positive Results in Second Quarter as Inflation Cools
CHICAGO--(BUSINESS WIRE)-- Global equity markets posted positive gains during the second quarter of 2023 due to cooling inflation, the GDP on track to grow
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nGlobal equity markets posted positive gains during the second quarter of 2023 due to cooling inflation, the GDP on track to grow 2% in the current year and renewed optimism in the technology sector. The median return for institutional asset owners included in the Northern Trust All Funds Over $100 million plan universe was up 2.3% for the quarter ending June 30, 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 $1.28 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 was 0.8% for the quarter, trailing the Northern Trust Public Funds universe, where the median plan was up 2.3% for the quarter, and the Northern Trust Foundation and Endowment (F&E) universe, which produced a 2.6% median return for the quarter.\n\n\n“The Federal Reserve increased the Fed Funds rate by 25 basis points during the quarter and commented that future rates increases would be on the low end of investor expectations. This fueled optimism that inflation is receding,” said Amy Garrigues, global head of Investment Risk and Analytical Services at Northern Trust. “This, combined with continued U.S. GDP growth and global optimism in the technology sector resulting from advancements in artificial intelligence, allowed equity markets to post strong results for the quarter.”\n\n\nThe Northern Trust U.S. Equity Program universe generated a 7.6% median return for the second quarter. Large cap stocks continued to outperform small cap stocks in the quarter, with the Russell 1000 large cap index up 8.6% compared to the Russell 2000 small cap index, which returned 5.2% for the quarter.\n\n\nThe Northern Trust U.S. Fixed Income program universe median return was down -0.5% for the quarter. Negative results were driven by an increase in interest rates, with the U.S. 10-year treasury bond yield rising from 3.48% to 3.81%, and continued rising interest rates in developed markets, most notably in the UK and Australia, which experienced high inflation during the quarter.\n\n\nERISA plan universe median one-, three- and five-years returns were 3.6%, 1.9% and 4.4% respectively. The U.S. fixed income asset class ...