Most U.S. public and corporate pension plans saw slightly negative asset performance in the second quarter, while foundations and endowments gained a bit, according to data from Northern Trust. For the three months ended June 30, the median ERISA plan slid 18 basis points, and the median public fund lost three basis points. Foundations and endowments gained three basis points.
"ERISA plans as a group have slightly higher allocations to developed and emerging non-U.S. stocks, where gains were not as strong as U.S. stocks," Paul Finlayson, a Northern Trust vice president, said in a news release. "This, coupled with the valuation increases posted in private equity, helps explain why ERISA plans as a group experienced slightly lower returns this quarter than other plan types who typically have larger allocations to private equity."
For the 12 months ended June 30, the median ERISA plan was up 17%, the median public fund was up 16.5%, and the median of foundations and endowments was 16.9%.
Northern Trust's institutional investment universe has more than 300 investment plans with a combined asset value of more than $390 billion.