Administration February 4, 2013
Northern Trust Universe Gained 12% in 2012
February 4, 2013 (PLANSPONSOR.com) - Institutional plan sponsors reaped a fourth consecutive year of positive investment returns in 2012.
Reported by PLANSPONSOR staff
The median plan in the Northern Trust Universe posted a 12.3% gain. Corporate Pension Plans and Public Funds, with higher allocations to public equities, had stronger returns than the Foundations & Endowments segment in the 12 months ending December 31, 2012.
Public equities were again key to performance in 2012, with programs in the Northern Trust Universe returning 16.9% at the median for the year. International equity programs gained 18.2% at the median, while the median U.S. equity program gained 16%. The median private equity program had a 10% return for the year, and total fixed income programs gained 8.8% at the median.Corporate Pension Plans had the highest returns in the Northern Trust Universe, gaining 13.6% at the median in 2012. Public Funds–pension plans for public employees–gained 12.9%, and the Foundations & Endowments segment–funds managed for philanthropic organizations, colleges and universities–rose 11.5% for the year. In the fourth quarter, Public Funds led with 2.1%, Corporate plans gained 1.86% and F&E plans returned 1.81% at the median, according to Northern Trust Universe data.
“Corporate plans benefited from their higher allocations to public equities – 47 percent at the median – and just an 11 percent allocation to PE and hedge funds,” said William Frieske, senior performance consultant, Northern Trust Investment Risk & Analytical Services. “Conversely, F&E plans had 40 percent allocated to PE and hedge funds and 32 percent allocated to equities, at the median, and as a result lagged the pension segment by 200 basis points for the year.”
You Might Also Like:
Julie Su’s Nomination for Secretary of Labor Passes Senate Committee
The vote was held in a closed session and advanced by a party-line vote; meanwhile, the Senate committee chaired by...
Benefits |
The Factors at Play in IBM’s Shift to a Cash Balance Plan Reviewed
IBM’s move away from the 401(k) match leads industry experts to evaluate the shortcomings of defined contribution plans in providing...
Benefits |
Despite Savings Shortfall for Public Sector Workers, Automatic Options Yet to Catch On
Research from the MissionSquare Research Institute shows that with defined benefit pensions not providing enough for full retirement, plan design...