NEW YORK, May 15, 2019 /PRNewswire/ -- The BNY Mellon U.S.
Master Trust Universe returned a median +7.63% in the first quarter
of 2019, returning to positive performance after negative
performance for the prior quarter.
The BNY Mellon U.S. Master Trust Universe offers peer
comparisons of performance by plan type and size. It consists of
514 corporate, foundation, endowment, public, Taft-Hartley, and
health care plans with a total market value of more than
$2.1 trillion and an average plan
size of over $6.9 billion. In
aggregate, U.S. Master Trust Universe plans reported a one-year
return of 4.17%, lagging its 3-year annualized return of +8.25% and
5-year annualized return of +6.00%.
Continuing the trend from 4th quarter 2018, corporate plans
outperformed, due to lower alternative asset allocations than other
plan types. Endowments underperformed due to having the largest
allocation to alternatives versus their peers.
"Corporate Plans tend to have lower allocations to alternative
investments, consistent with their preference to maintain higher
liquidity than other plan types. This quarter, Corporate Plans
underweighted alternative investments at 13% versus 23% for the
Master Trust Universe as a whole. During a period when traditional
investments outperformed alternatives, Corporate Plans benefited
from their higher allocations to public markets than their peers,"
said Frances Barney, CFA, Head of
Global Risk Solutions at BNY Mellon.
Additional Q4 Highlights
- Less than 1% of plans posted negative results during the
quarter.
- Corporate Plans saw the highest median return (+8.15%),
followed by Public Plans (+7.45%).
- U.S. equities posted a quarterly median return of +13.55%,
versus the Russell 3000 Index return of +14.04%. Non-U.S. equities
saw a median return of +10.78%, compared to the FTSE Developed x US
Net Index result of 10.06%. U.S. fixed income had a median return
of +3.34%, versus the Barclays Capital U.S. Aggregate Bond Index
return of +2.94%. Non-U.S. fixed income had a median return of
+4.12%, versus the FTSE World Government Bond Non-US Index return
of 1.52%. Real estate had a median return of +1.41%, versus the
NCREIF Property Index result of +1.80%.
BNY Mellon U.S. Master Trust Universe users are now able to take
advantage of BNY Mellon Asset Strategy View as a separate
service for additional analysis. Asset Strategy View layers big
data analytics onto detailed asset allocation, performance, and
cash flow data for the majority of the BNY Mellon U.S. Master Trust
Universe. It provides additional insight into underlying market
trends and investor activity.
BNY Mellon U.S. Master Trust Universe Median Plan
Returns*
Period Ending March 31, 2019
Universe
|
Number
of
Participants
|
1Q
2019
|
One-
Year
|
Five-
Years
|
Ten-
Years
|
Master Trust Total
Fund
|
514
|
7.63
|
4.17
|
6.00
|
9.85
|
Corporate Plans
|
219
|
8.15
|
4.77
|
6.20
|
10.29
|
Foundations
|
76
|
7.05
|
3.28
|
5.47
|
9.31
|
Endowments
|
70
|
6.87
|
4.17
|
5.73
|
9.21
|
Public Plans
|
88
|
7.45
|
4.00
|
6.12
|
10.15
|
Taft-Hartley Plans
|
32
|
7.45
|
3.43
|
5.59
|
9.38
|
Health Care Plans
|
22
|
6.73
|
4.32
|
5.37
|
-
|
*All returns are posted gross of fee results.
BNY Mellon U.S. Asset Allocation Medians of those invested by
Asset Class
Period Ending March 31, 2019
Asset
Class
|
Q1
2019
|
One Year
Ago
|
Three Years
Ago
|
Five Years
Ago
|
US Equity
|
23%
|
22%
|
22%
|
24%
|
Non-US
Equity
|
14%
|
16%
|
15%
|
15%
|
Global
Equity
|
6%
|
6%
|
5%
|
5%
|
US Fixed
Income
|
23%
|
20%
|
22%
|
21%
|
Global Fixed
Income
|
2%
|
3%
|
3%
|
3%
|
Non-US Fixed
Income
|
2%
|
2%
|
2%
|
2%
|
TIPS/Inflation Linked
Bonds
|
3%
|
3%
|
4%
|
3%
|
Real
Estate
|
5%
|
5%
|
6%
|
5%
|
Private
Equity
|
9%
|
8%
|
9%
|
8%
|
Other Real
Assets
|
2%
|
3%
|
3%
|
3%
|
Hedge
Funds
|
12%
|
13%
|
14%
|
16%
|
Cash
|
1%
|
1%
|
2%
|
2%
|
ABOUT BNY MELLON
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. As of
March 31, 2019, BNY Mellon had
$34.5 trillion in assets under
custody and/or administration, and $1.8
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.
Barclays Capital U.S. Aggregate Bond Index
© Barclays
Bank PLC 2016. This data is provided by Barclays Bank PLC all
rights are reserved.
FTSE Non-US World Government Bond, FTSE Developed x US Index,
Russell 3000 Index:
Source: London Stock Exchange Group plc and its group undertakings
(collectively, the "LSE Group"). © LSE Group 2019. FTSE Russell is
a trading name of certain of the LSE Group companies. "FTSE®"
"Russell®", are trade mark(s) of the relevant LSE Group companies
and is/are used by any other LSE Group company under license. All
rights in the FTSE Russell indexes or data vest in the relevant LSE
Group company which owns the index or the data. Neither LSE Group
nor its licensors accept any liability for any errors or omissions
in the indexes or data and no party may rely on any indexes or data
contained in this communication. No further distribution of data
from the LSE Group is permitted without the relevant LSE Group
company's express written.
Contact:
Paul Patella
BNY Mellon Asset Servicing
paul.patella@bnymellon.com
+1 212 635
1378
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SOURCE BNY Mellon