Press release
Northern Trust Universe Data: Surging Inflation Brought Volatility Back to the Market in the First Quarter
CHICAGO--(BUSINESS WIRE)-- Volatility returned to the markets during the first quarter of 2022, driven by inflation hitting a 40-year high, the U.S. Federal
About this update from Northern Trust Corporation
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nVolatility returned to the markets during the first quarter of 2022, driven by inflation hitting a 40-year high, the U.S. Federal Reserve announcing interest rate hikes and Russia invading Ukraine. The median return for institutional asset owners included in the Northern Trust All Funds Over $100 million plan universe was -4.4% for the quarter ending March 31, 2022, as global equity markets sold off during the quarter and bonds prices fell.\n\nThe Northern Trust Universe tracks the performance of 376 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\nThe Northern Trust Corporate (ERISA) universe median return for the quarter was -6.9%. The Northern Trust Foundation and Endowment (F&E) universe produced a -4.0% median return for the quarter while the Northern Trust Public Funds universe median returned -3.4% in the quarter.\n\n“Geopolitical concerns related to Russia’s invasion of Ukraine weighed heavily on international markets during the first quarter,” said Amy Garrigues, global head of Investment Risk and Analytical Services at Northern Trust. “Commodity prices such as oil, natural gas, wheat and corn soared as concerns related to supply chain disruptions became a focal point for investors. The strengthening of the U.S. dollar contributed to the decline of returns for U.S. investors overseas and was most pronounced for emerging markets.”\n\nThe Northern Trust U.S. equity program universe median return fell 6.0% for the quarter. The S&P 500 large cap index was down 4.6% for the three-month period. Large cap stocks continued to outperform small cap stocks. The Russell 1000 large cap index returned -5.1% compared to the Russell 2000 small cap index which returned -7.5% for the period.\n\nThe ERISA plan median one-, three- and five-years returns were 1.6%, 8.7% and 7.9% respectively. The U.S. fixed income asset class remains the largest ERISA plans allocation at a median allocation of 45.7% and grew during the period because of lower equity valuations. The median allocation for U.S. equity was 23.2%.\n\nThe Northern Trust Public Funds universe median multi-period returns for the one-, three- and five-year periods stand at 6.9%, 10.1% and 9.1% res...