Northern Trust Universe Data: Strong Global Equity Markets Drive Institutional Investor Gains in Second Quarter of 2026

Global equity markets reached new highs during the second quarter of 2026 as investors focused on strong corporate profits and resilient earnings momentum despite geopolitical concerns in Iran and supply chain disruptions tied to shipping bottlenecks in the Strait of Hormuz. The Northern Trust All Funds Over $100 Million plan universe reported a median return of 6.6% for the quarter.

The Northern Trust Universe tracks the performance of 368 large U.S. institutional investment plans, with combined assets of approximately $1.6 trillion, which subscribe to performance measurement services as part of Northern Trust’s asset servicing offerings.

All major institutional plan types posted positive results during the quarter. The Northern Trust Corporate (ERISA) universe returned 4.5% at the median during the quarter, while the Northern Trust Public Funds universe reported a 6.6% median return, and the Northern Trust Foundation and Endowment (F&E) universe posted a 7.0% median return.

U.S. equity markets advanced sharply during the second quarter, supported by continued strength in large-cap technology stocks, including AI hardware companies. As the quarter progressed, the rally broadened to include mid- and small-cap stocks. The S&P 500 rose 15.2% for the quarter and gained 22.3% over the one-year period. The Northern Trust US Equity program universe posted a 14.9% median return for the quarter and 22.2% for the year, while the Northern Trust Non-US Equity program universe had a median return of 11.7% in the quarter.

Nadia Cobalovic, global head of Integrated Portfolio Services at Northern Trust Asset Servicing, said: “Institutional investors benefited from strong market performance across both U.S. and international equities during the second quarter. Broad participation across sectors and regions helped support portfolio returns, while ongoing market uncertainty reinforced the value of maintaining diversified, long-term investment strategies.”

Fixed income markets generated modest positive returns during the quarter. Following the June Federal Open Market Committee meeting, the Federal Reserve maintained the federal funds target range at 3.50% to 3.75%, while signaling a more restrictive policy outlook amid rising inflation indicators. Against this backdrop, the Northern Trust US Fixed Income universe posted a median return of 1.1% for the quarter and 4.4% over the trailing year, compared with 0.6% and 3.8%, respectively, for the Bloomberg US Aggregate Bond Index.

ERISA plan one, three, and five‑year median returns were 9.4%, 7.4%, and 2.1%, respectively.

Within the Northern Trust ERISA universe, U.S. fixed income remained the largest allocation, rising to more than 56%, its highest level on record for the universe.

Public Funds universe median returns for the one, three, and five‑year periods were 13.5%, 11.2%, and 6.8%, respectively. U.S. equity remains the largest allocation within Public Funds, with a median allocation of 28.4%, reflecting a 1.5 percentage point market-driven increase from the prior year.

In the Foundations & Endowments universe, median one, three, and five‑year returns stood at 15.0%, 12.3%, and 7.0%, respectively. The median allocation to private equity declined to below 25%, reflecting the relative strength of public equity markets during the quarter.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services 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 June 30, 2026, Northern Trust had assets under custody/administration of US$20.0 trillion, and assets under management of US$2.0 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 . Follow us on @northerntrustcompany or Northern Trust 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.

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