Endowments Maintain Streak of Top Performance as Corporate Plan Returns Continue to Lag, according to BNY Mellon U.S. Master Trust Universe/Asset Strategy View®

NEW YORK, Aug. 16, 2018 /PRNewswire/ -- The BNY Mellon U.S. Master Trust Universe returned a median 0.63% in the second quarter of 2018, rebounding to positive performance after posting a negative first quarter result.

The BNY Mellon U.S. Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 490 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total a market value of more than $2.1 trillion and an average plan size of over $6.7 billion. In aggregate, U.S. Master Trust Universe plans reported a one-year return of +7.66%, surpassing its 3-year annualized return of +6.70% while underperforming its 5-year annualized return of +7.77%.  

Continuing the trend from the first quarter, corporate and health care plans underperformed, with quarterly returns of 18bp, and 41bp respectively.

"Endowments continued to benefit from higher allocations to alternatives and lower allocations to U.S. fixed income investments versus other plan types. They overweighted alternatives at a 44% allocation versus 22% for the Master Trust Universe as a whole, and underweighted U.S. fixed income at 10% versus 28% for the whole," said Frances Barney, CFA, head of Asset Owner Product Management and Global Risk Solutions at BNY Mellon.

"U.S. Equity was the top performing asset class with double-digit gains over the one-year period (+14.39%), followed by Real Estate continuing its run of positive annual returns (+8.71%) followed closely by Non-US Equity (+8.21%)," she added.

Additional Q2 Highlights

• Over 76% of plans posted positive results during the quarter
• Endowments saw the highest median return (+1.22%), followed by Publics (0.99%)
• U.S. equities posted a quarterly median return of 3.59%, versus the Russell 3000 Index return of +3.89%. Non-U.S. equities saw a median return of -2.30%, compared to the Russell Developed ex U.S. Large Cap Index result of -0.46%. U.S. fixed income had a median return of -0.12%, versus the Barclays Capital U.S. Aggregate Bond Index return of -0.16%. Non-U.S. fixed income had a median return of -5.52%, versus the FTSE World Government Bond Non-US Index return of -5.11%. Real estate had a median return of +2.21%, versus the NCREIF Property Index result of +1.81%

BNY Mellon U.S. Master Trust Universe users are now able to take advantage of 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*

*All returns are posted gross of fee results.

BNY Mellon U.S. Asset Allocation Medians (of those invested) by Asset Class
Period Ending June 30, 2018

Russell 3000 IndexRussell Developed ex US Large Cap Index:  Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication." Barclays Capital U.S. Aggregate Bond Index: © Barclays Bank PLC 2016.  This data is provided by Barclays Bank PLC all rights are reserved. FTSENon-US World Government Bond Index: London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2018. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" 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 consent. The LSE Group does not promote, sponsor or endorse the content of this communication."

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.

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BNY Mellon Asset Servicing
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