Median Total Master Trust Return Rebounds to Positive Territory in Q1 2019 After Negative Q4 According to BNY Mellon U.S. Master Trust Universe/BNY Mellon Asset Strategy View®
In a reversal from Q4 Equity Markets outperformed with Real Estate returns lagging other asset classes
May 15, 2019
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
SOURCE BNY Mellon
