- First negative results since Q2-13, but 12-month median return still up +10.16%;
- Allocations to U.S equities continue to inch downward
The median return of the BNY Mellon U.S. Master Trust Universe was -0.83% for the third quarter of 2014, ending four straight quarters of positive results. The last time the universe reported negative performance was the second quarter of 2013. For the twelve months ending September 30, 2014, the median plan returned +10.16%.
With a market value of more than $2.5 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 685 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.
"Equities were negative contributors to asset owners in the third quarter, with non-U.S. equities down -4.80% and U.S. equities off -0.58%," said John Houser, senior consultant for BNY Mellon's Global Risk Solutions group. "Asset owners did find gains, however, within real estate, which returned +2.46%. Over the full year, U.S. equities continue to outperform all asset classes with a return of +15.99%, followed by real estate at +12.30%."
- 21% of plans in the BNY Mellon Master Trust universe returned positive results during the quarter
- 23% of plans matched or outperformed the custom policy return for Q3
- Endowment plans recorded the highest median return (-0.46%), followed by Corporate plans (-0.73%). The difference between the highest and lowest performing plan type (Foundations) was 0.72 percentage points.
- U.S. equities posted a quarterly median return of -0.58%, versus the Russell 3000 Index return of +0.01%. Non-U.S. equities saw a median return of -4.80%, slightly ahead the Russell Developed ex U.S. Large Cap Index result of -5.79%. U.S. fixed income had a median return of +0.08%, versus the Barclays Capital U.S. Aggregate Bond Index return of +0.17%. Non-U.S. fixed income had a median return of -3.51%, versus the Citigroup Non-U.S. World Government Bond Index return of -5.38%. Real estate had a median return of +2.46%, versus the NCREIF Property Index result of +2.63%.
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 26%, U.S. fixed income 26%, non-U.S. equity 17%, non-U.S. fixed income 1%, real estate 4%, cash 2%, 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 Sept. 30, 2014, BNY Mellon had $28.3 trillion in assets under custody and/or administration, and $1.6 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).
BNY Mellon U.S. Master Trust Universe Median Plan Returns*
Period Ending September 30, 2014
Number of Participants
Master Trust Total Fund
Health Care Plans
Universe Custom Composite Benchmark
*All returns are posted gross of fee results.
BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class
Period Ending September 30, 2014
U.S. fixed income
Non-U.S. fixed income
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 2014. This data is provided by Barclays Bank PLC all rights are reserved. Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc., 2014. All rights reserved.