Press release
Northern Trust Universe Data: Reopening and Vaccination Progress Drives Strong Returns for U.S. Plan Sponsors in Q2 2021
CHICAGO--(BUSINESS WIRE)-- U.S. institutional plan sponsors had strong investment gains in the second quarter of 2021 as a result of continued market
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nU.S. institutional plan sponsors had strong investment gains in the second quarter of 2021 as a result of continued market momentum from the rollout of Covid-19 vaccinations. The median plan in the Northern Trust Universe returned 6.0% for the quarter, ranking the period as the fifth-best quarterly result over the last 10 years.\n\nThe Northern Trust Universe tracks the performance of 377 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\nCorporate ERISA pension plans returned 6.2% at the median, Foundations and Endowments produced a 6.0% median return and Public Funds had a median return of 5.6% in the three-month period ending June 30, 2021.\n\n“U.S. equity market returns were driven by climbing U.S. Covid-19 vaccination rates, proposals for massive federal infrastructure spending, and strong returns across the technology sector,” said Amy Garrigues, global head of Investment Risk and Analytical Services at Northern Trust. “International market data was also encouraging. The Markit eurozone PMI rose to its highest level since 2006, and the European Commission approved an $800 billion Covid-19 recovery package which was well received by European markets. With these combined factors, the Northern Trust Universe saw one of its most impressive quarters within the last decade.”\n\nU.S. equity is a core holding for most plans in the Northern Trust Universe, and the Northern Trust U.S. equity program universe reported a 7.8% median gain in the second quarter. Another top holding for most plans, U.S. fixed income, had a median return of 2.2% for the quarter.\n\nThe U.S. fixed income allocation was 42.9% of the median Corporate ERISA plan assets. ERISA plans’ allocation to U.S. equity was 24.1% and international equity median exposure was 6.1% in the second quarter.\n\nPublic Fund plans have the highest allocations to equity, with the median U.S. equity allocation at 34.0% 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 20.8%.\n\nFoundation and Endowment plans had a median U.S. equity allocation of 22.9% in the second quarter, down by 4.4% from five year...