Real estate the lone bright spot, extending a five-year streak of quarterly gains
The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was -4.67% for the third quarter, the second straight quarter of negative performance. The one-year return of -0.68% was below the five-year annualized return of +1.87% and is the lowest median annual return reported since 3Q-2011.
With a market value of more than $2.1 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 595 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.
"All plan types were in the red for the third quarter and the twelve-month period," said John Houser, senior consultant for BNY Mellon's Global Risk Solutions group. "Looking at asset classes, real estate (+3.14%) and U.S. fixed income (+0.52%) were the only positive segments for the quarter. Over the last year, real estate is the only asset class with double-digit gains (+13.6%), continuing its run of more than five years of positive quarters. Not surprisingly, median plan allocations to real estate ticked up from 4% last quarter to 5% in Q3."
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 25%, U.S. fixed income 26%, non-U.S. equity 16%, non-U.S. fixed income 2%, real estate 5%, cash 1%, and alternatives/other 25%.
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