BNY Mellon U.S. Master Trust Universe Up 14.4% in 2013 Led by resurgent U.S equities, median plan tops +12.6% gains from 2012

NEW YORK, Feb. 26, 2014 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe was +4.7% for the fourth quarter of 2013, resulting in year-to-date performance for the typical fund of +14.4%, ahead of the +12.6% returned in 2012. The average plan posted gains in three of four quarters last year. 

With a market value of more than $2.4 trillion and an average plan size of $3.9 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 612 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.

"For 2013, public funds outpaced other plan types with a return of +15.8%, getting a boost from their relative over-weighting of U.S. equity holdings," said John Gruber, head of product strategy for BNY Mellon's Global Risk Solutions group. "Public funds also have been the top performer over the last five years, though corporate plans posted the biggest gain in 2012. Foundations posted the highest fourth quarter return for 2013."

Highlights

  • 99% of plans in the Universe achieved positive returns in the fourth quarter. 
  • 28% of plans matched or outperformed the custom policy return for Q4.
  • Foundations recorded the highest median return for Q4 at +5.10%, followed by public funds at +5.08%.
  • U.S. equities posted a quarterly median return of +9.81%, versus the Russell 3000 Index return of +10.10%. Non-U.S. equities posted a median return of +5.49%, behind the Russell Developed ex US Large Cap Index result of +5.88%. U.S. fixed income had a median return of +0.29%, versus the Barclays Capital U.S. Aggregate Bond Index return of -0.14%. Non-U.S. fixed income posted a median return of +0.32%, versus the Citigroup Non-U.S. World Government Bond Index return of -1.24%. Real estate posted a median return of +2.42%, versus the NCREIF Property Index result of +2.53%.

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the fourth quarter was: U.S. equity 28%, U.S. fixed income 24%, non-U.S. equity 18%, non-U.S. fixed income 1%, real estate 3%, 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 Dec. 31, 2013, BNY Mellon had $27.6 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, or follow us on Twitter @BNYMellon.

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

Period Ending December 31, 2013


                                                                     Universe                                              

Number of   Participants

4Q

2013

One-

Year

Five- Years

Ten-Years

Master Trust Total Fund

612

4.73

14.37

11.90

7.08

    Corporate Plans

195

4.61

12.46

12.23

7.27

    Foundations

79

5.10

15.38

11.95

7.34

    Endowments

78

4.73

14.88

11.41

7.47

    Public Plans

102

5.08

15.83

12.58

7.10

    Taft-Hartley Plans

62

4.49

12.98

11.22

6.26

    Health Care Plans

14

3.71

12.47

10.85

6.29

Universe Custom Composite Benchmark

5.51

17.18

12.68

6.87

*All returns are posted gross of fee results.

BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class
Period Ending December 31, 2013


 

Asset Class

 

Q4

2013

 

Q3

2013

One
Year
Ago

Three
Years
Ago

Five
Years
Ago

U.S. equity

28%

28%

26%

34%

29%

U.S. fixed income

24%

25%

28%

27%

28%

Non-U.S. equity

18%

18%

16%

17%

15%

Non-U.S. fixed income

1%

2%

2%

2%

2%

Real estate

3%

3%

3%

2%

4%

Cash

1%

1%

1%

1%

2%

Alternatives/Other

25%

23%

24%

17%

20%


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 2013.  This data is provided by Barclays Bank PLC all rights are reserved. Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2013. All rights reserved.



Contact:

Joseph F. Ailinger Jr.

+1 617-722-7571

joe.ailinger@bnymellon.com

 

SOURCE BNY Mellon



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