Northern Trust Universe data reports investment rebound gains
29 July 2020 Chicago
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Institutional investment returns saw rebounds gains of 10.6 percent amid market recovery following the initial days of the COVID-19 pandemic, according to Northern Trust Universe data.
In tracking over 320 large US institutional investment plans as part of its performance measurement services, Northern Trust also found that public funds saw a median return of 11.1 percent during Q2, with foundation and endowments producing a 9.2 median return
Northern Trust Universe data also found that corporate Employee Retirement Income Security Act (ERISA) pensions plans, which have the largest allocations to US fixed income, returned 10.55 percent.
However, all three institutional segments were affected by market disruption from Q1.
Public funds saw a 3.8 percent year-to-date (YTD) total plan loss, while equities and fixed income investments plans saw YTD losses of 7.4 percent and 3.2 percent, respectively.
In addition, the firm’s US equity programme reported a 22 percent median return, which marks the highest quarterly return posted since 2000.
Mark Bovier, regional head of investment risk and analytical services at Northern Trust, explained: “Investors’ willingness to take on additional risk propelled returns in the equity and corporate fixed income sectors, bringing those markets close to their all-time highs by the end of Q2.”
“Institutional plans with higher allocations to those sectors benefited from the risk exposure, while alternative asset classes trailed in relative performance during the quarter.”
In tracking over 320 large US institutional investment plans as part of its performance measurement services, Northern Trust also found that public funds saw a median return of 11.1 percent during Q2, with foundation and endowments producing a 9.2 median return
Northern Trust Universe data also found that corporate Employee Retirement Income Security Act (ERISA) pensions plans, which have the largest allocations to US fixed income, returned 10.55 percent.
However, all three institutional segments were affected by market disruption from Q1.
Public funds saw a 3.8 percent year-to-date (YTD) total plan loss, while equities and fixed income investments plans saw YTD losses of 7.4 percent and 3.2 percent, respectively.
In addition, the firm’s US equity programme reported a 22 percent median return, which marks the highest quarterly return posted since 2000.
Mark Bovier, regional head of investment risk and analytical services at Northern Trust, explained: “Investors’ willingness to take on additional risk propelled returns in the equity and corporate fixed income sectors, bringing those markets close to their all-time highs by the end of Q2.”
“Institutional plans with higher allocations to those sectors benefited from the risk exposure, while alternative asset classes trailed in relative performance during the quarter.”
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