Ninety-seven percent of plans post gains in Q4-15, but median one-year return down -0.29%
The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was +2.24% for the fourth quarter of 2015, the first quarter of positive performance following two quarters in the red. The one-year return of -0.29% was below the Universe's five-year annualized return of +6.85%, marking the second straight quarter of negative twelve-month performance.
With a market value of more than $1.69 trillion and an average plan size of $5.0 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 560 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.
"While 2016 has been a tough ride for the markets, public plans returned 2.58% in Q4-15, benefiting from higher allocations to non-U.S. equity and outperforming all other plan types. Public and Taft-Hartley plans were the only ones to see positive returns for all of 2015," said Frances Barney, head of Consulting-Americas for Global Risk Solutions at BNY Mellon. "Looking at asset classes, all segments posted positive results in Q4 except for U.S. fixed income. Real estate again was the only asset class with double-digit gains over the one-year period (+12.83%), continuing its run of over five years of positive quarterly results."
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the fourth quarter was: U.S. equity 26%, U.S. fixed income 26%, non-U.S. equity 17%, non-U.S. fixed income 2%, real estate 5%, cash 1%, and alternatives/other 23%.
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