August 11, 2015

U.S. Master Trust Universe Returns Basically Flat in Q2, says BNY Mellon

Real estate continues to outperform all other asset classes


NEW YORK, Aug. 11, 2015 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was essentially flat for the second quarter of 2015, down a scant 0.02 percent. The one-year return of +2.95%, however, was well below the five-year annualized return of +10.36%.

With a market value of more than $2.3 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 623 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.

"In a fairly flat environment, endowments topped other plan-types with a +0.58% return in Q2 due to their relative performance within the U.S. and non-U.S. fixed income segments," said John Houser, senior consultant for BNY Mellon's Global Risk Solutions group. "Looking at asset classes, investors found some gains during the quarter within non-U.S. equities (+1.12%) and real estate (+3.18%). Over the one-year period, real estate easily outpaced all asset classes with a +13.18% return, continuing its run of more than five years of positive quarterly results."

Q2 Highlights

  • 48% of plans in the BNY Mellon Master Trust universe returned positive results during the quarter;
  • Endowments recorded the highest median return (+0.58%), followed by Taft Hartley plans (+0.30%);
  • U.S. equities posted a quarterly median return of +0.25%, versus the Russell 3000 Index return of +0.14%. Non-U.S. equities saw a median return of +1.12%, ahead the Russell Developed ex U.S. Large Cap Index result of +0.80%. U.S. fixed income had a median return of -1.36%, versus the Barclays Capital U.S. Aggregate Bond Index return of -1.68%. Non-U.S. fixed income had a median return of -0.69%, versus the Citigroup Non-U.S. World Government Bond Index return of -1.54%. Real estate had a median return of +3.18%, versus the NCREIF Property Index result of +3.14%.

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the second quarter was: U.S. equity 26%, U.S. fixed income 25%, non-U.S. equity 17%, non-U.S. fixed income 2%, real estate 4%, 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 June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or administration, and $1.7 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 June 30, 2015


 

 

                                                                     Universe                                               

Number of 
Participants

2Q 
2015

One-

Year

Five-
Years

Ten-
Years

Master Trust Total Fund

623

-0.02

2.95

10.36

6.77

    Corporate Plans

230

-1.41

2.66

10.35

6.79

    Foundations

81

0.28

2.21

9.94

6.78

    Endowments

95

0.58

3.66

10.75

7.01

    Public Plans

107

0.16

3.08

11.03

6.86

    Taft-Hartley Plans

54

0.30

3.38

10.19

6.37

    Health Care Plans

15

-0.01

2.35

9.43

NA


 

 

 

 

 

*All returns are posted gross of fee results.


 

 

 

 

       

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

Period Ending June 30, 2015

 

Asset Class

 

Q2

2015

 

Q1

2015

One
Year
Ago

Three
Years
Ago

Five
Years
Ago

U.S. equity

26%

27%

27%

28%

31%

U.S. fixed income

25%

23%

27%

29%

31%

Non-U.S. equity

17%

18%

17%

16%

15%

Non-U.S. fixed income

2%

1%

1%

2%

2%

Real estate

4%

4%

4%

2%

2%

Cash

1%

2%

1%

1%

1%

Alternatives/Other

25%

25%

23%

22%

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.

SOURCE BNY Mellon