November 17, 2015

U.S. Master Trust Universe Reflects Negative Returns in Q3, says BNY Mellon

Real estate the lone bright spot, extending a five-year streak of quarterly gains


NEW YORK, Nov. 17, 2015 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was -4.67% for the third quarter, the second straight quarter of negative performance. The one-year return of -0.68% was below the five-year annualized return of +1.87% and is the lowest median annual return reported since 3Q-2011. 

With a market value of more than $2.1 trillion and an average plan size of $3.6 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 595 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.

"All plan types were in the red for the third quarter and the twelve-month period," said John Houser, senior consultant for BNY Mellon's Global Risk Solutions group. "Looking at asset classes, real estate (+3.14%) and U.S. fixed income (+0.52%) were the only positive segments for the quarter. Over the last year, real estate is the only asset class with double-digit gains (+13.6%), continuing its run of more than five years of positive quarters. Not surprisingly, median plan allocations to real estate ticked up from 4% last quarter to 5% in Q3."

Q3 Highlights

  • Only 3.4% of plans posted positive results during the quarter;
  • Corporate pensions saw the highest median return (-4.03%), followed by Health Care plans (-4.22%);
  • U.S. equities posted a quarterly median return of -7.44%, versus the Russell 3000 Index return of -7.25%. Non-U.S. equities saw a median return of -11.47%, compared the Russell Developed ex U.S. Large Cap Index result of -10.18%. U.S. fixed income had a median return of +0.52%, versus the Barclays Capital U.S. Aggregate Bond Index return of +1.23%. Non-U.S. fixed income had a median return of -3.57%, versus the Citigroup Non-U.S. World Government Bond Index return of +1.71%. Real estate had a median return of +3.14%, versus the NCREIF Property Index result of +3.09%. 

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 25%, U.S. fixed income 26%, non-U.S. equity 16%, non-U.S. fixed income 2%, real estate 5%, cash 1%, and alternatives/other 25%.

BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Learn more at www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

BNY Mellon U.S. Master Trust Universe Median Plan Returns*

Period Ending September 30, 2015


Universe 

Number of  
Participants

3Q 
2015

One-

Year

Five-
Years

Ten-
Years

Master Trust Total Fund

595

-4.67

-0.68

7.51

5.81

    Corporate Plans

221

-4.03

-0.75

7.57

5.90

    Foundations

82

-5.28

-1.08

7.21

5.75

    Endowments

85

-4.76

-0.48

7.91

6.02

    Public Plans

108

-4.93

-0.70

7.83

5.87

    Taft-Hartley Plans

56

-4.72

-0.65

7.52

5.44

    Health Care Plans

16

-4.22

-1.02

6.49

5.50






*All returns are posted gross of fee results.






 

BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class

Period Ending September 30, 2015


Asset Class

Q3

2015

Q2

2015

One
Year
Ago

Three
Years
Ago

Five
Years
Ago

U.S. equity

25%

26%

26%

28%

32%

U.S. fixed income

26%

25%

17%

28%

28%

Non-U.S. equity

16%

17%

26%

15%

17%

Non-U.S. fixed income

2%

2%

1%

2%

2%

Real estate

5%

4%

4%

2%

2%

Cash

1%

1%

2%

1%

1%

Alternatives/Other

25%

25%

24%

24%

18%

Russell 3000 Index and Russell Developed ex US Large Cap Index:  Russell Investment Group ("Russell") is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto.  The Russell Index data may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. Barclays Capital U.S. Aggregate Bond Index: © Barclays Bank PLC 2015.  This data is provided by Barclays Bank PLC all rights are reserved. Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2015. All rights reserved.

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.

Contact:   
Joseph F. Ailinger Jr.
+1 617-722-7571 
joe.ailinger@bnymellon.com

SOURCE BNY Mellon