Second Quarter Returns Essentially Flat for U.S. Master Trust Universe, says BNY Mellon
Median plan up 11.59% over last 12 months
NEW YORK, Aug. 14, 2013 /PRNewswire/ -- The median return of the BNY Mellon U.S. Master Trust Universe for the second quarter of 2013 was down slightly at -0.05%, the first negative result since the second quarter of 2012. For the twelve months ending June 30, 2013, the median plan returned +11.59%.
With a market value of more than $2.2 trillion and an average plan size of $3.6 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 619 corporate, foundation, endowment, public, Taft-Hartley and health care plans.
"Performance for all plan types within the Universe were relatively flat for the second quarter, as gains in U.S. equities and real estate were offset by losses in other asset classes," said John Gruber, head of product strategy for BNY Mellon's Global Risk Solutions group. "Endowments were the best performing segment, with higher allocations to alternatives and real estate, while corporate plans were the lowest performing segment, having the highest allocation to fixed income."
Highlights
- 47% of plans in the BNY Mellon Master Trust universe returned positive results during the quarter. Over the prior 12-month period, 99% of plans were in the black.
- 36% of plans matched or outperformed the custom policy return for Q2. For the full year, 21% of plans outperformed the custom policy.
- Endowments recorded the highest median return for the quarter at +0.37%, followed by Foundations at +0.20%.
- U.S. equities posted a quarterly median return of +2.85%, versus the Russell 3000 Index return of +2.69%. Non-U.S. equities posted a median return of -2.00%, behind the Russell Developed ex US Large Cap Index result of -1.23%. U.S. fixed income had a median return of -2.88%, versus the Barclays Capital U.S. Aggregate Bond Index return of -2.32%. Non-U.S. fixed income posted a median return of -3.84%, compared to the Citigroup Non-U.S. World Government Bond Index return of -3.44%. Real estate posted a median return of +2.76%, versus the NCREIF Property Index result of +2.87%.
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the second quarter was: U.S. equity 28%, U.S. fixed income 26%, non-U.S. equity 17%, non-U.S. fixed income 1%, real estate 3%, cash 1%, and alternatives/other 24%.
BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.
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 and more than 100 markets. As of June 30, 2013, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 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). Learn more at bnymellon.com or follow us on Twitter @BNYMellon.
| BNY Mellon U.S. Master Trust Universe Median Plan Returns* |
|||||
| Period Ending June 30, 2013 |
|||||
| Universe |
Number of Participants |
2Q 2013 |
One- Year |
Five- Years |
Ten- Years |
| Master Trust Total Fund |
619 |
-0.05 |
11.59 |
4.90 |
7.33 |
| Corporate Plans |
208 |
-0.89 |
10.70 |
5.64 |
7.61 |
| Foundations |
80 |
0.20 |
12.68 |
4.40 |
7.64 |
| Endowments |
73 |
0.37 |
12.20 |
4.08 |
7.68 |
| Public Plans |
100 |
0.01 |
12.36 |
5.20 |
7.06 |
| Taft-Hartley Plans |
60 |
0.05 |
11.34 |
4.77 |
6.54 |
| Health Care Plans |
20 |
-0.11 |
10.11 |
4.57 |
NA |
| Universe Custom Composite Benchmark |
0.29 |
11.90 |
6.18 |
6.90 |
|
| *All returns are posted gross of fee results. |
|||||
| BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class |
|||||
| Period Ending June 30, 2013 |
|||||
| Asset Class |
Q2 2013 |
Q1 2013 |
One Year Ago |
Three Years Ago |
Five Years Ago |
| U.S. equity |
28% |
27% |
28% |
31% |
35% |
| U.S. fixed income |
26% |
27% |
29% |
31% |
26% |
| Non-U.S. equity |
17% |
17% |
16% |
15% |
18% |
| Non-U.S. fixed income |
1% |
2% |
2% |
2% |
1% |
| Real estate |
3% |
3% |
2% |
2% |
3% |
| Cash |
1% |
1% |
1% |
1% |
2% |
| Alternatives/Other |
24% |
23% |
22% |
18% |
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 2013. This data is provided by Barclays Bank PLC all rights are reserved. Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2013. All rights reserved.
SOURCE BNY Mellon
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