American institutional investors lost 1.5% in the second quarter, reports Northern Trust, based on data assessing the approximately 300 plans in its Northern Trust Universe.
Negative returns from domestic and international equities dragged down performance; however, positive returns in most quarters since 2009 have boosted longer-term performance. As such, the median plan in the Northern Trust Universe has a three-year return of more than 11%.
Corporate ERISA pension plans led all segments with a loss of 0.8%, while public funds lost 1.7% and the foundations and endowments segment fell 2% for the three months ending June 30, 2012.
The median U.S. equity program was down 3.9% in Q2, after gaining 13% in the first quarter. International equities lost more, with the median program down 7% in the quarter. Fixed income programs had a positive return of 2.3%, with most of that performance coming from U.S. programs. Hedge funds returned -0.7%.
It’s been a rough few months for U.S. pension plans. Last week, both BNY Mellon and Mercer reported that the typical U.S. corporate pension plan hit a record low in the month of July.