2014

U.S. Master Trust Universe Back in the Black for Third Quarter, says BNY Mellon Median plan up 11.6% over last 12 months; shift to non-U.S. equities helps public plans

NEW YORK, Nov. 8, 2013 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe for the third quarter of 2013 was 4.47%, a return to positive territory after essentially flat results in the second quarter. For the twelve months ending September 30, 2013, the median plan returned +11.63%.

With a market value of more than $2.3 trillion and an average plan size of $3.8 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 613 corporate, foundation, endowment, public, Taft-Hartley and health care plans.

"Public plans benefited during the quarter from a relative overweighting of non-U.S. equities compared to other plan types," said John Gruber, head of product strategy for BNY Mellon's Global Risk Solutions group. "The difference between their performance (+4.89%) and the lowest performing plan type was a significant 67 basis points. Still, all but six plans within the Universe saw positive returns for Q3."

Highlights

  • 99% of plans in the BNY Mellon Master Trust Universe returned positive results during the quarter.
  • 48% of plans matched or outperformed the custom policy return for Q3.
  • Public funds recorded the highest median return for the quarter at +4.89%, followed by Foundations at +4.88%.
  • U.S. equities posted a quarterly median return of +6.80%, versus the Russell 3000 Index return of +6.35%. Non-U.S. equities posted a median return of +9.90%, behind the Russell Developed ex US Large Cap Index result of +11.61%. U.S. fixed income had a median return of +0.69%, versus the Barclays Capital U.S. Aggregate Bond Index return of +0.57%. Non-U.S. fixed income posted a median return of +2.04%, versus the Citigroup Non-U.S. World Government Bond Index return of +4.06%.  Real estate posted a median return of +3.46%, versus the NCREIF Property Index result of +2.59%.

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 28%, U.S. fixed income 25%, non-U.S. equity 18%, non-U.S. fixed income 2%, real estate 3%, cash 1%, and alternatives/other 23%.

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, 2013, BNY Mellon had $27.4 trillion in assets under custody and/or administration, and $1.5 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 September 30, 2013


Universe

Number of

Participants

3Q

2013

One-

Year

Five-

Years

Ten-

Years

Master Trust Total Fund

613

4.47

11.63

7.79

7.47

    Corporate Plans

198

4.42

10.10

8.48

7.75

    Foundations

74

4.88

13.16

7.60

7.88

    Endowments

81

4.22

12.43

7.23

7.94

    Public Plans

97

4.89

12.25

8.23

7.27

    Taft-Hartley Plans

66

4.62

10.44

7.42

6.69

    Health Care Plans

15

4.30

9.40

7.53

6.50

Universe Custom Composite Benchmark

4.56

11.95

8.63

7.11

*All returns are posted gross of fee results.

BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class
Period Ending September 30, 2013

Asset Class

Q3

2013

Q2

2013

One

Year

Ago

Three

Years

Ago

Five

Years

Ago

U.S. equity

28%

28%

28%

32%

32%

U.S. fixed income

25%

26%

28%

28%

27%

Non-U.S. equity

18%

17%

15%

17%

16%

Non-U.S. fixed income

2%

1%

2%

2%

1%

Real estate

3%

3%

2%

2%

4%

Cash

1%

1%

1%

1%

2%

Alternatives/Other

23%

24%

24%

18%

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 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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