Nov 19, 2010
Third quarter median return tops 8% with all plans back in the black, reversing Q2 losses
BOSTON, November 19, 2010 — The median return of the BNY Mellon Master Trust Universe was 8.48% for the third quarter of 2010, up strongly from the -4.87% return reported the previous quarter and a quick rebound into positive territory. With the rebound, the median return is 6.70% on a year-to-date basis and 10.32% for the twelve months ending September 30, 2010.
With a market value of $1.99 trillion and an average plan size of $2.7 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 728 corporate, foundation, endowment, public, Taft-Hartley and health care plans.
"All investors experienced positive performance for the quarter, with corporate plans leading with a return of just under nine percent," said Greg Stewart, managing director and regional product manager of BNY Mellon Asset Servicing. "Both corporate and public plan sponsors benefited from strong equity returns in Q3 as both have the greatest allocations to this asset class."
Highlights
"Once again the quarter's performance was a story of equity market returns, although to the comfort of investors, we saw double-digit gains as opposed to the losses of last quarter," said Stewart. "Concerns continued regarding the fragility of the recovery, but news that the U.S. economy is improving, albeit slowly, helped drive returns higher by quarter's end. A weaker dollar also helped U.S. investors overseas."
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 32%, U.S. fixed income 28%, non-U.S. equity 17%, non-U.S. fixed income 2%, alternative investments 10%, real estate 2%, cash 1%, and other (oil, gas, etc.) 8%.
BNY Mellon Asset Servicing offers clients worldwide a broad spectrum of specialized asset servicing capabilities, including custody and fund services, securities lending, performance and analytics, and execution services. BNY Mellon Asset Servicing provides services through BNY Mellon and other related companies.
BNY Mellon (NYSE: BK) is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Learn more at www.bnymellon.com.
BNY Mellon U.S. Master Trust Universe Median Plan Returns |
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Period Ending September 30, 2010 |
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Universe |
Number of |
3Q |
One- |
Five- |
Ten- |
|
Master Trust Total Fund |
728 |
8.48 |
10.32 |
3.84 |
4.13 |
|
Corporate Plans |
271 |
8.95 |
11.20 |
4.12 |
4.29 |
|
Foundations |
83 |
7.82 |
9.98 |
3.63 |
4.24 |
|
Endowments |
87 |
7.61 |
10.13 |
4.22 |
4.30 |
|
Public Plans |
124 |
8.92 |
10.18 |
3.72 |
4.27 |
|
Taft-Hartley Plans |
59 |
8.42 |
9.86 |
2.94 |
3.58 |
|
Health Care Plans |
15 |
7.99 |
9.19 |
3.74 |
N/A |
|
Universe Custom Composite Benchmark |
9.56 |
9.68 |
2.24 |
1.57 |
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Barclays Capital U.S. Aggregate Bond Index: © Barclays Bank PLC 2010. This data is provided by Barclays Bank PLC all rights are reserved.
Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2010. All rights reserved.
Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. |
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