Median Total Master Trust Return Continues Positive Performance for Fourth Straight Quarter in Q4 2019 According to BNY Mellon U.S. Master Trust Universe/BNY Mellon Asset Strategy View®
Non-U.S. Equity rebounds to highest performing asset class in Q4
NEW YORK, Feb. 27, 2020 /PRNewswire/ -- The BNY Mellon U.S. Master Trust Universe returned a median +4.48% in the fourth quarter of 2019, continuing the trend of positive quarterly performance seen in the first three quarters of 2019.
The BNY Mellon U.S. Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 521 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total market value of more than $2.3 trillion and an average plan size of over $7.5 billion. In aggregate, U.S. Master Trust Universe plans reported a one-year return of 17.61%, bettering the 3-year annualized return of +9.29% and 5-year annualized return of +6.94% respectively.
Public Plans were the highest performing plan type for the quarter, benefitting from their higher allocations to equity than other plan types. Corporate plans underperformed other plan types as performance in fixed income investments trailed equity market performance for the quarter.
"To enhance their funded status, Public Plans tend to allocate more assets to return seeking investments, such as public market equities. This quarter, global equities overweighted their peers by 8%. This overweight resulted in Public Plans being the top performing plan type with Non-U.S. Equity and U.S. Equity being the highest performing asset classes for the quarter," said Frances Barney, CFA, Head of Global Risk Solutions at BNY Mellon.
Additional Q4 Highlights
- Less than 2% of plans posted negative results during the quarter
- Public Plans saw the highest median return (+5.16%), followed by Foundations (+5.14%)
- U.S. equities posted a quarterly median return of +8.70%, versus the Russell 3000 Index return of +9.10%. Non-U.S. equities saw a median return of +9.31%, compared to the FTSE Developed ex U.S. Net Index result of +8.23%. U.S. fixed income had a median return of +0.45%, versus the Barclays Capital U.S. Aggregate Bond Index return of +0.18%. Non-U.S. fixed income had a median return of +3.73%, versus the FTSE World Government Bond Non-US Index return of -0.07%. Real estate had a median return of +1.74%, versus the NCREIF Property Index result of +1.55%.
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. BNY Mellon 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* |
|||||
Universe |
Number of |
4Q |
One- Year |
Five- |
Ten- |
Master Trust Total Fund |
521 |
4.48 |
17.61 |
6.94 |
8.17 |
Corporate Plans |
226 |
3.49 |
19.73 |
7.19 |
8.59 |
Foundations |
78 |
5.14 |
16.59 |
6.47 |
7.65 |
Endowments |
66 |
4.86 |
15.89 |
6.61 |
7.74 |
Public Plans |
90 |
5.16 |
17.78 |
7.19 |
8.45 |
Taft-Hartley Plans |
28 |
4.80 |
16.59 |
6.54 |
7.79 |
Health Care Plans |
19 |
3.47 |
15.88 |
6.30 |
|
* |
All returns are posted gross of fee results. |
BNY Mellon Asset Allocation Medians of those invested by Asset Class |
||||
Asset Class |
Q4 2019 |
One Year Ago |
Three Years |
Five Years Ago |
US Equity |
21% |
21% |
23% |
24% |
Non-US Equity |
13% |
14% |
15% |
14% |
Global Equity |
6% |
5% |
5% |
5% |
US Fixed Income |
22% |
24% |
20% |
22% |
Global Fixed Income |
2% |
3% |
3% |
3% |
Non-US Fixed Income |
2% |
2% |
2% |
2% |
TIPS/Inflation Linked Bonds |
3% |
4% |
3% |
3% |
Real Estate |
5% |
5% |
5% |
5% |
Private Equity |
9% |
9% |
8% |
9% |
Other Real Assets |
2% |
2% |
3% |
3% |
Hedge Funds |
12% |
13% |
14% |
15% |
Cash |
1% |
1% |
1% |
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 Dec. 31, 2019, BNY Mellon had $37.1 trillion in assets under custody and/or administration, and $1.9 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
[email protected]
+1 212 635 1378
SOURCE BNY Mellon Asset Servicing
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