Stock Market Drives Strong Institutional Returns in Q207

“The equity markets drove the strong returns in the second quarter, with broad-based indexes in both the domestic and international arena posting gains above 5% and emerging markets finishing well ahead of other investment opportunities,” said Joe Nardulli, Product Manager, Northern Trust Investment Risk & Analytical Services, in a press release. Emerging markets equity was the top returning asset class, with the Northern Trust Emerging Markets Manager Universe posting a median return of 14.9% – more than double the 7.1% return of its international developed market counterpart, according to the press release.

The top-returning plans in the universe had large allocations to international equity and small allocations to fixed income, relative to other plans. Fixed income investments brought down institutional plan returns in the second quarter, with the Northern Trust Fixed Income Manager Universe posting a median return of -0.3%.

Corporate and Public Fund plans returned a median 12.6% over three years and 11.5% over five years. Foundations & Endowments fared slightly better over longer time frames, posting median returns of 12.8% over three years and 11.8% over five years.

The Northern Trust Universe represents the performance results of more than 300 large institutional investment plans, with a combined asset value of approximately $700 billion, which subscribe to Northern Trust performance measurement services. More information can be found at  http://www.northerntrust.com .