Northern Trust Universe Data: Plan Sponsors Record Median Gain in 2016
February 07 2017 - 10:27AM
Business Wire
Northern Trust Universe data today revealed that in 2016 plan
sponsors netted a median gain of 7.4 percent. The fourth quarter of
2016 marked the fifth consecutive quarterly gain for institutional
asset owners, with plan sponsors gaining approximately 0.5 percent
at the median. Robust equity returns, especially U.S. equities,
helped offset an uptick in interest rates that depressed bond
prices.
The Northern Trust Universe tracks the performance of
approximately 300 large U.S. institutional investment plans, with a
combined asset value of approximately $899 billion, which subscribe
to performance measurement services as part of Northern Trust’s
asset servicing offerings.
Since 1998, the average fourth quarter median return has been
3.7 percent, placing this quarter significantly below average. An
increase in bond yields and uncertainty in Europe weighed on bond
and international equity valuations. International equities
declined 1.7 percent at the median and U.S. fixed income declined
2.3 percent. The Foundation & Endowments segment had the best
median return in the fourth quarter with a gain of 1 percent.
Public Funds netted 0.8 percent while Corporate ERISA plans were
down 0.8 percent.
“While the difference between the median returns of each plan
sponsor segment was not significant, the way each segment achieved
its return varied considerably. Foundations & Endowments
benefited from a larger allocation, approximately 48 percent, to
alternatives,” said Amy Garrigues, head of Investment Risk and
Analytical Services at Northern Trust. “Public Funds had the
largest allocation to U.S. equities, the best performing asset
class in the quarter with a quarterly return of 4.2 percent, while
corporate ERISA plans were hurt by their exposure to non-core fixed
income, which declined nearly 6 percent.”
Longer-term returns as of December 31, 2016 are as follows:
4th Qtr 1 Yr
3 Yr 5 yr ERISA -0.8% 8.2% 5.3% 8.5%
Public Funds 0.8% 7.9% 4.7% 8.9% Foundations & Endowments 1.0%
6.6% 4.1% 8.0%
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider
of wealth management, asset servicing, asset management and banking
to corporations, institutions, affluent families and individuals.
Founded in Chicago in 1889, Northern Trust has offices in the
United States in 19 states and Washington, D.C., and 22
international locations in Canada, Europe, the Middle East and the
Asia-Pacific region. As of December 31, 2016, Northern Trust had
assets under custody of US$6.7 trillion, and assets under
management of US$942 billion. For more than 125 years, Northern
Trust has earned distinction as an industry leader for exceptional
service, financial expertise, integrity and innovation. Visit
northerntrust.com or follow us on Twitter @NorthernTrust.
© 2017 Northern Trust Corporation. Head Office: 50 South La
Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with
limited liability in the U.S. Products and services provided by
subsidiaries of Northern Trust Corporation may vary in different
markets and are offered in accordance with local regulation. For
legal and regulatory information about individual market offices,
visit northerntrust.com/disclosures.
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Northern Trust CorporationTim Hacker(312)
557-6090Tim.Hacker@ntrs.comhttp://www.northerntrust.com
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