The strong performance of the stock market has helped US institutional investors to achieve a solid quarter of returns between July and September 2024.
The median return for the third quarter was 4.7% while the annual median was 20%, according to the Northern Trust All Funds Over $100 Million plan universe. The Northern Trust Universe tracks the performance of 388 large US institutional investment plans with a combined asset value of more than $1.4 trillion.
The returns were driven by strong gains for US equities in Q3 which saw some indexes reach new highs. The Northern Trust US Equity Program universe produced a 6.3% median return for the third quarter.
Small cap stocks outperformed large caps, despite the dominance of the Magnificent Seven. The Russell 1000 Large Cap Index increased by 6.1% while the Russell 2000 Small Cap Index rose by 9.3%.
Meanwhile, fixed income reacted to interest rate cuts by the Fed and the ECB. The Northern Trust US Fixed Income program universe median return was 5.0% for the quarter.
“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.”
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.
The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.
The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.
The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."
'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.
If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.
Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.
This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve