Institutional asset owners witnessed a third consecutive quarter of positive returns between April and the end of June according to data from Northern Trust.

Plan sponsors gained an average of 1.9% in the second quarter, an increase from the 0.7% median return recorded in the first three months of 2016.

Since 1998, the average second quarter median return has been 1.7%, placing this quarter slightly above average.

In the second quarter of 2016, Corporate ERISA plans fared best among all plan types with a median return of 3%.

Public funds gained 1.7% while foundations & endowments netted 1.5% in the second quarter.

The Chicago-based bank’s statistics cover the performance of close to 300 large US institutional investment plans, with a combined asset value of approximately $899bn.

Recent data from Wilshire Associates on close to $3.6trn in assets under management across 1,300 US plans showed a median return of 1.89% for all plan types in the second quarter and a one-year gain of 0.91%.

“Differing returns across plan types were driven largely by the duration of their fixed income investments,” said Bill Frieske, senior investment performance consultant, Northern Trust’s Investment Risk & Analytical Services.

“In an effort to de-risk their defined benefit pension plans, corporate ERISA plan sponsors have been lengthening the duration of their fixed income programs. 

"Interest rates declined in the second quarter, which increased returns for long duration bonds and helped boost Corporate ERISA plan returns.”

Non-US equities returned -0.2% at the median, while US equities returned 2.2 % in the quarter.

Corporate ERISA plans were helped by a larger allocation to U.S. fixed income.

Public fund returns were dampened by high exposure to international equities which produced the lowest median return of the major asset classes.

Foundations & endowment returns were muted by weak performance from a significant allocation (11%) to private equity, the second lowest returning major asset class at 0.2%.