NEW YORK, Feb. 21, 2017 /PRNewswire/ -- The median return
of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking
service, was .57% for the fourth quarter of 2016, marking the fifth
straight quarter of positive results. The one-year return of 7.43%
was above the Universe's 3-year annualized return of +4.53% and
marked the third consecutive quarter of positive twelve-month
performance.
With a market value of more than $1.9
trillion and an average plan size of $5.1 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 613 corporate, foundation, endowment, public, Taft-Hartley, and
health care plans. Launched last 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 Q4, gaining 1.13% as
they continued to benefit from a higher allocation to private
equity," said Frances Barney, CFA,
head of Global Risk Solutions at BNY Mellon. "The difference
between endowments and corporate plans, the lowest performing
group, was 195 basis points. Corporate plans were the only plan
type with negative performance in Q4, losing -.82% owing to higher
allocations to long duration fixed income. All asset classes
continued to post positive results on a 1-year basis in the fourth
quarter."
"U.S. equity continued as the top performing asset class with
double-digit gains over the one-year period 12.66%, followed by
Real Estate 8.72% and Non-US Fixed Income 5.92%," she added.
Q4 Highlights
- Over 68% of plans posted positive results during the
quarter;
- Endowments saw the highest median return 1.13%, followed by
foundations .85%;
- U.S. equities posted a quarterly median return of 4.13%, versus
the Russell 3000 Index return of 4.21%. Non-U.S. equities saw a
median return of -1.86%, compared to the Russell Developed ex U.S.
Large Cap Index result of -.59%. U.S. fixed income had a median
return of -2.39%, versus the Barclays Capital U.S. Aggregate Bond
Index return of -2.98%. Non-U.S. fixed income had a median return
of -4.49%, versus the Citigroup Non-U.S. World Government Bond
Index return of -10.84%. Real estate had a median return of 1.89%,
versus the NCREIF Property Index result of 1.73%.
The average asset allocation in the BNY Mellon U.S. Master Trust
Universe for the fourth quarter was: US Equity 19%, Non-US Equity
16%, Global Equity 5%, US Fixed Income 20%, Global Fixed Income 1%,
Non-US Fixed Income 1%, Other Fixed Income 2%, TIPS/Inflation
Linked Bonds 2%, Real Estate 8%, Private Equity 11%, Other Real
Assets 3%, Hedge Funds 9%, Cash 3%, and Other 1%.
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 December 31, 2016, BNY Mellon had $29.9 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). Additional information is available on 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
December 31, 2016
|
|
Universe
|
Number of
Participants
|
4Q
2016
|
One-
Year
|
Five-
Years
|
Ten-
Years
|
Master Trust Total
Fund
|
613
|
0.57
|
7.53
|
8.15
|
5.18
|
Corporate Plans
|
207
|
-0.82
|
8.21
|
8.02
|
5.34
|
Foundations
|
82
|
0.85
|
6.92
|
7.45
|
4.73
|
Endowments
|
93
|
1.13
|
6.73
|
8.33
|
5.27
|
Public Plans
|
125
|
0.72
|
7.81
|
8.45
|
5.23
|
Taft-Hartley Plans
|
64
|
1.03
|
7.64
|
8.55
|
5.13
|
Health Care Plans
|
15
|
1.11
|
7.06
|
7.10
|
N/A
|
|
|
|
|
|
*All returns are posted gross of fee results.
BNY Mellon U.S. Trust Universe Median Allocations by Asset
Class
Period Ending December 31,
2016
Asset
Class
|
|
|
One
Year
Ago
|
Two
Years
Ago
|
Three
Years
Ago
|
|
Q4
2016
|
Q3
2016
|
|
|
|
US Equity
|
19%
|
19%
|
19%
|
20%
|
20%
|
Non-US
Equity
|
16%
|
16%
|
16%
|
15%
|
17%
|
Global
Equity
|
5%
|
5%
|
5%
|
6%
|
6%
|
US Fixed
Income
|
20%
|
20%
|
21%
|
22%
|
21%
|
Global Fixed
Income
|
1%
|
1%
|
1%
|
1%
|
1%
|
Non-US Fixed
Income
|
1%
|
1%
|
1%
|
1%
|
1%
|
Other Fixed
Income
|
2%
|
2%
|
2%
|
2%
|
1%
|
TIPS/Inflation Linked
Bonds
|
2%
|
2%
|
2%
|
2%
|
2%
|
Real
Estate
|
8%
|
8%
|
7%
|
7%
|
7%
|
Private
Equity
|
11%
|
11%
|
10%
|
10%
|
10%
|
Other Real
Assets
|
2%
|
2%
|
2%
|
2%
|
2%
|
Hedge
Funds
|
9%
|
9%
|
10%
|
9%
|
9%
|
Other
|
1%
|
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: FTSE 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 2017. This data
is provided by Barclays Bank PLC all rights are reserved.
Citigroup Non-US World Government Bond Index: © Citigroup
Global Markets Inc., 2017. 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:
Cheryl
Krauss
BNY Mellon Investment Services
e: cheryl.krauss@bnymellon.com
m: +1
212-635-8176
Frank Pinto
BNY Mellon Investment Services
e: frank.pinto@bnymellon.com
m: +1 917-309-1065
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SOURCE BNY Mellon