Press release
Northern Trust Universe Data: Institutional Plans Encounter Scattered Third-Quarter Gains
CHICAGO--(BUSINESS WIRE)-- U.S. institutional plan sponsors saw minimal gains in the third quarter of 2021, according to the Northern Trust Universe. The
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[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nU.S. institutional plan sponsors saw minimal gains in the third quarter of 2021, according to the Northern Trust Universe. The median plan return for the third quarter of 2021 was 0.2%, as volatile equity markets hit record highs but ended flat for the July-to-September period.\n\nThe Northern Trust Universe tracks the performance of 380 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\nFoundations and Endowments produced a 0.9% median return in the quarter ending September 30, 2021, slightly ahead of Public Funds, with a median return of 0.4%, and Corporate ERISA pension plans at 0.0% for the third quarter.\n\n“U.S. equity markets moved to record highs during the third quarter, however broad gains were erased by volatility in September,” said Amy Garrigues, global head of Investment Risk and Analytical Services at Northern Trust. “Overall, positive market returns were the result of the ongoing resilient economic recovery, continued support by the Federal Reserve, and strong corporate earnings.”\n\nDomestic equity and fixed income receive the largest allocations across client portfolios for all market segments in the Northern Trust Universe. The Northern Trust U.S. equity program universe reported a -0.1% median gain in the third quarter, in line with broad stock market indexes. The Northern Trust U.S. fixed income program universe had a median return of 0.1% for the quarter, with high yield bonds gaining 0.9% or more for the period.\n\nCorporate ERISA pensions have the largest allocations to U.S. fixed income, with 44.5% of plan assets allocated to the asset class for the median ERISA plan at the end of the third quarter. The U.S. equity allocation was 23.2% of the median ERISA plan assets. International equity median exposure was 5.9% in the third quarter.\n\nPublic Fund plans have the highest allocations to equity, with the median U.S. equity allocation at 32.2% at the end of the second quarter. International equity median exposure came to 15.2%. The median exposure to U.S. fixed income for Public Funds was 21.0%.\n\nFoundation and Endowment plans had a median U.S. equity allocation of 21.2% in the third quarter. International equity median ...