Foundations and endowments topped every plan type with a 7% quarterly gain
Large US institutional investment plans posted a median return of 6.6 percent in the second quarter of 2026, Northern Trust reported, as an equity rally lifted results across corporate, public, and endowment portfolios.
That median comes from the firm's all-funds universe of plans that each hold more than US$100m.
Northern Trust's broader performance universe tracks 368 large US institutional plans with roughly US$1.6tn in combined assets, all of which subscribe to its performance measurement services.
Every major plan type finished the quarter in positive territory.
Corporate (ERISA) plans returned 4.5 percent at the median, public funds matched the all-funds figure at 6.6 percent, and foundations and endowments led at 7.0 percent.
US equities drove much of the gain.
Northern Trust attributed the quarter's advance to large-cap technology stocks, including AI hardware names, with the rally later broadening to mid- and small-cap shares.
The S&P 500 rose 15.2 percent over the quarter and 22.3 percent over the year, while the firm's US equity program universe returned 14.9 percent for the quarter and 22.2 percent for the year.
Its non-US equity universe posted an 11.7 percent median return over the three months.
Nadia Cobalovic, global head of integrated portfolio services at Northern Trust Asset Servicing, said institutional investors gained from "strong market performance" in US and international equities during the second quarter.
"Broad participation across sectors and regions" supported returns, she said, and uncertainty made the case for diversified, long-term strategies.
Fixed income delivered more modest gains.
After its June meeting, the US Federal Reserve held the federal funds target range at 3.50 to 3.75 percent while, in Northern Trust's read, signalling a more restrictive stance amid rising inflation indicators.
The firm's US fixed income universe returned 1.1 percent for the quarter and 4.4 percent over the trailing year, ahead of the Bloomberg US Aggregate Bond Index at 0.6 percent and 3.8 percent respectively.
Allocation shifts also emerged across the universes.
Within the ERISA universe, US fixed income climbed above 56 percent to become the largest allocation and its highest level on record.
Public funds kept US equity as their biggest holding at a median 28.4 percent, a 1.5 percentage point rise the firm tied to market moves rather than active buying.
Among foundations and endowments, the median allocation to private equity slipped below 25 percent, which Northern Trust linked to the relative strength of public equity markets.
Over longer horizons, ERISA plans posted median returns of 9.4 percent, 7.4 percent, and 2.1 percent over one, three, and five years.
Public funds returned 13.5 percent, 11.2 percent, and 6.8 percent over the same periods, while foundations and endowments delivered 15.0 percent, 12.3 percent, and 7.0 percent.
