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Northern Trust Universe Data: Strong Q3 for U.S. Institutional Investors as Global Markets Continue 2024 Gains

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Northern Trust reports strong Q3 2024 performance for U.S. institutional investors, with the All Funds Over $100 Million plan universe achieving a 4.7% median return. The Corporate (ERISA) universe led with 6.4%, followed by Public Funds at 4.5% and Foundation & Endowment at 4.2%. Strong performance was driven by U.S. equities and fixed income markets, with small-cap stocks outperforming large-caps. The U.S. Fixed Income program posted a 5.0% median return, while the U.S. Equity Program achieved 6.3%. One-year returns approached 20% across segments.

Northern Trust riporta una forte performance nel terzo trimestre del 2024 per gli investitori istituzionali statunitensi, con l'universo dei fondi superiori a 100 milioni di dollari che ha registrato un ritorno mediano del 4.7%. L'universo aziendale (ERISA) ha guidato con un 6.4%, seguito dai fondi pubblici a 4.5% e dalle fondazioni e patrimoni a 4.2%. La forte performance è stata trainata dai mercati azionari e di reddito fisso statunitensi, con le azioni a bassa capitalizzazione che hanno superato quelle a grande capitalizzazione. Il programma di reddito fisso statunitense ha registrato un ritorno mediano del 5.0%, mentre il programma azionario statunitense ha raggiunto un 6.3%. I ritorni su un anno si sono avvicinati al 20% in tutti i segmenti.

Northern Trust informa sobre un sólido rendimiento en el tercer trimestre de 2024 para los inversores institucionales de EE. UU., con el universo de fondos de más de 100 millones de dólares logrando un retorno mediano del 4.7%. El universo corporativo (ERISA) lideró con un 6.4%, seguido por los fondos públicos con un 4.5% y las fundaciones y dotaciones con un 4.2%. El sólido rendimiento fue impulsado por las acciones y los mercados de renta fija de EE. UU., con las acciones de pequeña capitalización superando a las de gran capitalización. El programa de renta fija de EE. UU. publicó un retorno mediano del 5.0%, mientras que el programa de acciones de EE. UU. logró un 6.3%. Los retornos en un año se acercaron al 20% en todos los segmentos.

노던 트러스트는 2024년 3분기 미국 기관 투자자들을 위한 강력한 성과를 보고했으며, 1억 달러 이상의 펀드 총액이 4.7%의 중위 수익률을 기록했습니다. 기업(ERISA) 유니버스는 6.4%로 선두에 나섰고, 그 뒤를 이어 공공 펀드가 4.5%, 재단 및 기부금이 4.2%를 기록했습니다. 강력한 성과는 미국의 주식 시장과 고정 수입 시장에 의해 주도되었으며, 소형주가 대형주보다 더 나은 성과를 보였습니다. 미국 고정 수입 프로그램은 5.0%의 중위 수익률을 기록했으며, 미국 주식 프로그램은 6.3%을 달성했습니다. 모든 세그먼트에서 1년 수익률은 20%에 근접했습니다.

Northern Trust rapporte une forte performance au troisième trimestre 2024 pour les investisseurs institutionnels américains, avec l'univers des fonds de plus de 100 millions de dollars atteignant un rendement médian de 4,7%. L'univers des entreprises (ERISA) a mené avec un 6,4%, suivi des fonds publics à 4,5% et des fondations et dotations à 4,2%. La forte performance a été soutenue par les actions américaines et les marchés de la dette, avec les actions de petite capitalisation surperformant celles de grande capitalisation. Le programme de revenu fixe américain a affiché un rendement médian de 5,0%, tandis que le programme d'actions américaines a atteint un 6,3%. Les rendements sur un an ont approché les 20% dans tous les segments.

Northern Trust berichtet über eine starke Leistung im dritten Quartal 2024 für institutionelle Anleger in den USA, wobei das Universum der Fonds über 100 Millionen Dollar eine medianer Rendite von 4,7% erreichte. Das Unternehmensuniversum (ERISA) führte mit 6,4%, gefolgt von öffentlichen Fonds mit 4,5% und Stiftungen und Dotationen mit 4,2%. Die starke Leistung wurde durch die US-Aktien- und Anleihemärkte angetrieben, wobei Small-Cap-Aktien große Aktien übertrafen. Das US-Anleihenprogramm erzielte eine medianer Rendite von 5,0%, während das US-Aktienprogramm eine 6,3% erreichte. Die Einjahresrenditen näherten sich in allen Segmenten 20%.

Positive
  • Strong Q3 performance with 4.7% median return for All Funds Over $100 Million universe
  • ERISA plans achieved 18.1% one-year return
  • Public Funds showed robust 5-year returns at 8.1%
  • Foundation & Endowments delivered strong 5-year performance at 9.1%
  • U.S. Fixed Income program achieved 5.0% median return
Negative
  • ERISA plans showed negative three-year returns at -0.2%

Insights

The institutional investment landscape shows remarkable strength across all major segments. The $1.4 trillion tracked universe achieved an impressive 4.7% median return in Q3, with ERISA plans leading at 6.4%. This outperformance is particularly noteworthy given the challenging market conditions.

The data reveals several key insights: First, the broadening market rally beyond the Magnificent Seven, with small-caps outperforming large-caps (9.3% vs 6.1%), indicates healthier market breadth. Second, fixed income's strong performance (5.0% median return) reflects successful monetary policy transition. Third, private equity allocations slightly decreased from 13.7% to 13.0% in Public Funds, suggesting tactical rebalancing amid public market strength.

Long-term performance metrics remain robust, with F&E showing the strongest 5-year returns at 9.1%, highlighting the effectiveness of their diversified investment approach including alternative investments.

CHICAGO--(BUSINESS WIRE)-- Global equity and fixed income markets had strong performance in the third quarter, lifting U.S. institutional plan gains across segments. The Northern Trust All Funds Over $100 Million plan universe achieved a median return of 4.7% for the quarter, placing it in the top quartile of returns over the past decade, while one-year median returns approached 20%.

The Northern Trust Universe tracks the performance of 388 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings.

The Northern Trust Corporate (ERISA) universe produced a median return of 6.4% for the quarter, while the Northern Trust Foundation and Endowment (F&E) universe had a median return of 4.2%, and the Northern Trust Public Funds universe posted a median return of 4.5% for the period ending September 30.

“In the third quarter, the Fed's much-anticipated rate cut was finally enacted, and institutional investors grew more optimistic as equity markets climbed, driven by solid corporate earnings and renewed confidence in the economy's growth,” said John Turney, Global Head of Total Portfolio Solutions. “The quarter's strong performance across most sectors has lifted hopes for the future, painting a picture of resilient market strength.”

U.S. equities experienced strong gains in the third quarter, with some indices reaching new highs. The Northern Trust U.S. Equity Program universe produced a 6.3% median return for the third quarter.

Despite the “Magnificent Seven” leading the U.S. equity market's 18-month rally, mid and small-cap stocks outperformed in the third quarter. The Russell 1000 Large Cap Index increased by 6.1%, while the Russell 2000 Small Cap Index rose by 9.3% during the same period, highlighting the stronger performance of small cap stocks over large cap stocks.

Strong returns in the fixed income markets were fueled by actions taken by the Federal Reserve and the European Central Bank to ease monetary policy by cutting interest rates. The Northern Trust U.S. Fixed Income program universe median return was 5.0% for the quarter. The U.S. Ten-Year Government Bond yield fell from 4.47% to 3.73% during the quarter and the U.S. Two-Year Government Bond yield fell 66 basis points to 3.93%.

The ERISA Plan one, three, and five-year median returns were 18.1%, -0.2%, and 4.3%, respectively. The ERISA Plans’ heavy allocation to public equity and fixed income contributed to the outperformance for the quarter relative to other plan segments.

The Public Funds universe median returns for the one, three, and five-year periods stand at 16.7%, 4.6% and 8.1%, respectively. The median quarter allocation to U.S. and International Equity are 27.6% and 12.5%, respectively. The median exposure to U.S. Fixed Income for Public Funds is 22.3%. Strong performance in public market holdings has led to a slight reduction in the median allocation for Private Equity, from 13.7% to 13.0%.

The Foundations & Endowments median one, three, and five-year returns were 17.2%, 4.4% and 9.1%, respectively. The median allocation to private equity is 21.0%, while the median allocation to hedge funds is 8.3%.

Results as of September 30, 2024:

 

3rd Qtr

1Yr

3Yr

5Yr

ERISA

6.4%

18.1%

-0.2%

4.3%

Public Funds

4.5%

16.7%

4.6%

8.1%

Foundations & Endowments

4.2%

17.2%

4.4%

9.1%

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 a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2024, Northern Trust had assets under custody/administration of US$17.4 trillion, and assets under management of US$1.6 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

Media



Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

Camilla_Greene@ntrs.com



Simon Ansell

+ 44 (0) 20 7982 1016

Simon_Ansell@ntrs.com



US & Canada:

John O’Connell

+1 312 444 2388

John_O’Connell@ntrs.com



http://www.northerntrust.com

Source: Northern Trust

FAQ

What was Northern Trust's (NTRS) All Funds median return in Q3 2024?

Northern Trust's All Funds Over $100 Million plan universe achieved a median return of 4.7% in Q3 2024.

How did ERISA plans perform in Northern Trust's (NTRS) Q3 2024 report?

ERISA plans posted a 6.4% median return for Q3 2024, with one-year returns at 18.1%, though three-year returns were negative at -0.2%.

What were the Public Funds returns in Northern Trust's (NTRS) Q3 2024 report?

Public Funds posted a 4.5% median return for Q3 2024, with one-year returns at 16.7% and five-year returns at 8.1%.

How did Foundation & Endowments perform in Northern Trust's (NTRS) Q3 2024 report?

Foundation & Endowments achieved a 4.2% median return in Q3 2024, with one-year returns at 17.2% and five-year returns at 9.1%.

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