Public Plans Top Performers as Corporate Plans Continue to Lag, According to BNY Mellon U.S. Master Trust Universe/BNY Mellon Asset Strategy View®
Higher allocations to U.S. equity drove outperformance as U.S. fixed income sustained streak as lowest performing asset class
NEW YORK, Nov. 6, 2018 /PRNewswire/ -- The BNY Mellon U.S. Master Trust Universe returned a median 2.22% in the third quarter of 2018, maintaining positive performance for a second consecutive quarter.
The BNY Mellon U.S. Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 534 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total market value of more than $2.2 trillion and an average plan size of over $7.0 billion. In aggregate, U.S. Master Trust Universe plans reported a one-year return of +6.33%, lagging its 3-year annualized return of +9.15% and 5-year annualized return of +7.69%.
Continuing the trend from the first and second quarters, corporate and health care plans underperformed, with quarterly returns of 200bp, and 219bp respectively.
"Public Plans benefited from higher allocations to US Equities and lower allocations to U.S. fixed income investments versus other plan types. They overweighted US Equity at a 27% allocation versus 24% for the Master Trust Universe as a whole, and underweighted U.S. fixed income at 24% 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 (+16.19%), followed by Real Estate continuing its run of positive annual returns (+8.79%) followed by Non-US Equity (+2.73%)," she added.
Additional Q2 Highlights
- Over 99% of plans posted positive results during the quarter.
- Taft-Hartley's saw the highest median return (+2.56%), followed by Publics (+2.49%).
- U.S. equities posted a quarterly median return of 6.17%, versus the Russell 3000 Index return of +7.12%. Non-U.S. equities saw a median return of 0.70%, compared to the Russell Developed ex U.S. Large Cap Index result of 1.23%. U.S. fixed income had a median return of 0.27%, versus the Barclays Capital U.S. Aggregate Bond Index return of 0.02%. Non-U.S. fixed income had a median return of 0.62%, versus the FTSE World Government Bond Non-US Index return of -2.19%. Real estate had a median return of +1.96%, versus the NCREIF Property Index result of +1.67%.
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* |
|||||
Universe |
Number of |
3Q |
One- |
Five- |
Ten- |
Master Trust Total Fund |
534 |
2.22 |
6.33 |
7.28 |
7.69 |
Corporate Plans |
249 |
2.00 |
4.65 |
7.19 |
7.77 |
Foundations |
75 |
2.32 |
6.94 |
7.14 |
7.38 |
Endowments |
74 |
2.26 |
7.55 |
7.39 |
7.54 |
Public Plans |
87 |
2.49 |
7.89 |
7.73 |
7.94 |
Taft-Hartley Plans |
23 |
2.56 |
6.92 |
7.03 |
7.54 |
Health Care Plans |
22 |
2.19 |
5.34 |
6.35 |
7.65 |
*All returns are posted gross of fee results. |
|||||
BNY Mellon U.S. Asset Allocation Medians (of those invested) by Asset Class |
|||
Asset Class |
One Year Ago |
Three Years Ago |
|
Q3 2018 |
|||
US Equity |
23% |
23% |
23% |
Non-US Equity |
14% |
17% |
15% |
Global Equity |
5% |
5% |
5% |
US Fixed Income |
21% |
20% |
21% |
Global Fixed Income |
3% |
3% |
3% |
Non-US Fixed Income |
2% |
2% |
2% |
TIPS/Inflation Linked Bonds |
3% |
3% |
3% |
Real Estate |
5% |
5% |
5% |
Private Equity |
9% |
8% |
8% |
Other Real Assets |
3% |
3% |
3% |
Hedge Funds |
12% |
14% |
15% |
Cash |
2% |
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 Sept. 30, 2018, 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.
Russell 3000 Index Russell 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.
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[email protected]
+44 (0) 20 7163 4716
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