Aug 10, 2012
First negative returns since Q3 2011; median plan still up 5.65% year-to-date
BOSTON, August 10, 2012 — The median return of the BNY Mellon U.S. Master Trust Universe was -1.47% for the second quarter of 2012, driving down performance for the typical fund to 5.65% on a year-to-date basis. This marks only the third time in the last 12 quarters that the median plan has shown a negative return, and the first time since third quarter of 2011. Even with weak quarterly performance, the median plan remained up 1.26% for the twelve months ending June 30, 2012.
With a market value of more than $2.1 trillion and an average plan size of $3.1 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 more than 700 corporate, foundation, endowment, public, Taft-Hartley and health care plans.
"All segments of the BNY Mellon Master Trust Universe were in the red for the second quarter as distress in the Euro zone largely plagued results for the period," said John Houser, vice president and manager of performance & risk analytics for BNY Mellon. "Global equity markets tumbled in April and May, and U.S. markets fared only slightly better as the upcoming 'fiscal cliff' weighed heavily. Fixed income posted solid results, but the near-term outlook for bonds remains cloudy. Real estate continued its momentum with a 2.45% return, marking 10 straight quarters of positive performance for that asset class."
Highlights
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the second quarter was: U.S. fixed income 29%, U.S. equity 28%, non-U.S. equity 16%, non-U.S. fixed income 2%, real estate 2%, cash 1%, and alternatives/other 22%.
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BNY Mellon U.S. Master Trust Universe Median Plan Returns
Period Ending June 30, 2012 |
|||||
Universe |
Number of |
2Q |
One- |
Five- |
Ten- |
Master Trust Total Fund |
702 |
-1.47 |
1.26 |
1.92 |
6.56 |
Corporate Plans |
240 |
-0.85 |
3.82 |
2.40 |
6.87 |
Foundations |
77 |
-1.80 |
0.05 |
1.41 |
6.58 |
Endowments |
89 |
-1.53 |
0.58 |
1.89 |
6.74 |
Public Plans |
112 |
-1.60 |
1.14 |
1.89 |
6.33 |
Taft-Hartley Plans |
85 |
-1.65 |
1.94 |
1.64 |
5.61 |
Health Care Plans |
13 |
-1.42 |
1.29 |
-- |
--- |
Universe Custom Composite Benchmark |
-1.41 |
3.79 |
2.88 |
6.21 |
BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class
Period Ending June 30, 2012
Asset Class |
Q2 2012 |
Q1 2012 |
One |
Three |
Five |
U.S. equity |
28% |
29% |
32% |
33% |
38% |
U.S. fixed income |
29% |
27% |
26% |
30% |
22% |
Non-U.S. equity |
16% |
16% |
18% |
15% |
21% |
Non-U.S. fixed income |
2% |
2% |
2% |
1% |
1% |
Real estate |
2% |
2% |
2% |
2% |
2% |
Cash |
1% |
2% |
2% |
2% |
1% |
Alternatives/Other |
22% |
22% |
18% |
17% |
15% |
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 2012. This data is provided by Barclays Bank PLC all rights are reserved.
Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2012. All rights reserved.