Third Quarter Plan Sponsor Returns Stay Positive with U.S. Equity Leading the Way, according to BNY Mellon U.S. Master Trust Universe/Asset Strategy View

Dienstag, 29.11.2016 14:35 von

PR Newswire

NEW YORK, Nov. 29, 2016 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was +3.56% for the third quarter of 2016, marking the fourth straight quarter of positive results. The one-year return of 9.59% was above the Universe's five-year annualized return of +9.01% and marked the second consecutive quarter of positive twelve-month performance.

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With a market value of more than $1.9 trillion and an average plan size of $5.2 billion, the BNY Mellon U.S. Master Trust Universe is a fund-level tracking service that can be used to make peer comparisons of performance by plan type and size. It consists of 594 corporate, foundation, endowment, public, Taft-Hartley, and health care plans. Launched this spring, Asset Strategy View provides detailed asset allocation, performance, and cash flow data for the majority of the BNY Mellon U.S. Master Trust Universe.

"Endowments outperformed all plan types in Q3, gaining +3.81% as they benefited from a higher allocation to private equity," said Frances Barney, CFA, head of Consulting-Americas for Global Risk Solutions at BNY Mellon. "The difference between endowments and health care plans, the lowest performing group, was 50 basis points. All asset classes posted positive results in the third quarter.

"U.S. equity was the top performing asset class with double-digit gains over the one-year period (+14.39%), followed by non-U.S. fixed income (+11.17%) and non-U.S. equity (+9.89%)," she added.

Q3 Highlights

  • Over 99% of plans posted positive results during the quarter;
  • Endowments saw the highest median return (+3.81%), followed by foundations (+3.75%);
  • U.S. equities posted a quarterly median return of +4.66%, versus the Russell 3000 Index return of +4.40%. Non-U.S. equities saw a median return of 6.71%, compared to the Russell Developed ex U.S. Large Cap Index result of 6.50%. U.S. fixed income had a median return of +1.12%, versus the Barclays Capital U.S. Aggregate Bond Index return of +0.46%. Non-U.S. fixed income had a median return of +2.72%, versus the Citigroup Non-U.S. World Government Bond Index return of +0.60%. Real estate had a median return of +2.34%, versus the NCREIF Property Index result of +1.77%.

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, 2016, BNY Mellon had $30.5 trillion in assets under custody and/or administration, and $1.72 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. Trust Universe Median Plan Returns*

Period Ending September 30, 2016


Universe 

Number of 
Participants

3Q
2016

One-
Year

Five-
Years

Ten-
Years

Master Trust Total Fund

594

3.56

9.59

9.01

5.77

    Corporate Plans

219

3.52

11.19

9.24

6.10

    Foundations

84

3.75

8.19

8.43

5.32

    Endowments

89

3.81

7.49

8.75

5.77

    Public Plans

110

3.54

9.75

9.30

5.78

    Taft-Hartley Plans

48

3.46

9.56

9.47

5.25

    Health Care Plans

18

3.31

7.88

7.76

5.55


*All returns are posted gross of fee results.

 

 

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

Period Ending September 30, 2016


Asset Class



One
Year
Ago

Two
Years
Ago

Three
Years
Ago


Q3 2016

Q2 2016




US Equity

19%

19%

19%

20%

20%

Non-US Equity

16%

15%

16%

16%

15%

Global Equity

5%

5%

5%

5%

5%

US Fixed Income

20%

22%

21%

22%

23%

Global Fixed Income

1%

1%

1%

1%

1%

Non-US Fixed Income

1%

1%

1%

1%

1%

Other Fixed Income

2%

2%

2%

2%

2%

TIPS/Inflation Linked Bonds

2%

2%

2%

2%

2%

Real Estate

8%

8%

7%

7%

7%

Private Equity

11%

10%

10%

10%

10%

Other Real Assets

2%

2%

2%

2%

2%

Hedge Funds

9%

9%

10%

9%

9%

Other

0%

0%

0%

0%

0%

Cash

3%

3%

3%

3%

3%


100%

100%

100%

100%

100%

 

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 2016.  This data is provided by Barclays Bank PLC all rights are reserved. Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2016. 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 

Cheryl Krauss
+1 212-635-8176
cheryl.krauss@bnymellon.com

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SOURCE BNY Mellon