Eighty-three percent of plans post gains in Q1-16, but median one-year return down -1.52%
NEW YORK, May 18, 2016 — The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was +1.17% for the first quarter of 2016, marking the second straight quarter of positive results. The one-year return of -1.52% was below the Universe’s five-year annualized return of +6.35% and marked the third straight quarter of negative twelve-month performance.
With a market value of more than $1.8 trillion and an average plan size of $5.4 billion, the BNY Mellon U.S. Master Trust Universe is a fund-level tracking service that can be used to make peer comparisons of both performance and asset allocation results. The Universe consists of 525 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.
“Corporate pension funds outperformed all plan types in Q1, gaining +2.19% as they benefited from a higher allocation to U.S. fixed income,” said Frances Barney, CFA, head of Consulting-Americas for Global Risk Solutions at BNY Mellon. “The difference between corporates and endowments, the lowest performing group, was 206 basis points. All asset classes posted positive results in Q1 except for non-U.S. equity.
“Real estate again was the only asset class with double-digit gains over the one-year period (+11.97%), continuing its run of more than six years of positive quarterly results,” she added.
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the first quarter was: U.S. equity 25%, U.S. fixed income 25%, non-U.S. equity 17%, non-U.S. fixed income 2%, real estate 5%, cash 1%, and alternatives/other 25%.
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