Median Total Master Trust return rebounds to positive
May 15, 2019

The BNY Mellon US Master Trust Universe returned a median +7.63 percent in the first quarter of 2019, returning to positive performance after negative performance for the prior quarter.

The BNY Mellon US Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 514 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total market value of more than US$2.1 trillion and an average plan size of over $6.9 billion.

In aggregate, US Master Trust Universe plans reported a one-year return of 4.17 percent, lagging its three-year annualized return of +8.25 percent and five-year annualized return of +6.00 percent.

Continuing the trend from the fourth quarter of 2018, corporate plans outperformed, due to lower alternative asset allocations than other plan types. Endowments underperformed due to having the largest allocation to alternatives versus their peers.

Said Frances Barney, CFA, Head of Global Risk Solutions at BNY Mellon: "Corporate plans tend to have lower allocations to alternative investments, consistent with their preference to maintain higher liquidity than other plan types.

"This quarter, corporate plans underweighted alternative investments at 13 percent versus 23 percent for the Master Trust Universe as a whole. During a period when traditional investments outperformed alternatives, corporate plans benefited from their higher allocations to public markets than their peers."

Additional Q4 Highlights

Less than 1 percent of plans posted negative results during the quarter.

Corporate plans saw the highest median return (+8.15 percent), followed by Public Plans (+7.45 percent).

US equities posted a quarterly median return of +13.55 percent, versus the Russell 3000 Index return of +14.04 percent. Non-US equities saw a median return of +10.78 percent, compared to the FTSE Developed x US Net Index result of 10.06 percent. US fixed income had a median return of +3.34 percent, versus the Barclays Capital US Aggregate Bond Index return of +2.94 percent. Non-US fixed income had a median return of +4.12 percent, versus the FTSE World Government Bond Non-US Index return of 1.52 percent. Real estate had a median return of +1.41 percent, versus the NCREIF Property Index result of +1.80 percent.





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The BNY Mellon US Master Trust Universe returned a median +7.63 percent in the first quarter of 2019, returning to positive performance after negative performance for the prior quarter.

The BNY Mellon US Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 514 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total market value of more than US$2.1 trillion and an average plan size of over $6.9 billion.

In aggregate, US Master Trust Universe plans reported a one-year return of 4.17 percent, lagging its three-year annualized return of +8.25 percent and five-year annualized return of +6.00 percent.

Continuing the trend from the fourth quarter of 2018, corporate plans outperformed, due to lower alternative asset allocations than other plan types. Endowments underperformed due to having the largest allocation to alternatives versus their peers.

Said Frances Barney, CFA, Head of Global Risk Solutions at BNY Mellon: "Corporate plans tend to have lower allocations to alternative investments, consistent with their preference to maintain higher liquidity than other plan types.

"This quarter, corporate plans underweighted alternative investments at 13 percent versus 23 percent for the Master Trust Universe as a whole. During a period when traditional investments outperformed alternatives, corporate plans benefited from their higher allocations to public markets than their peers."

Additional Q4 Highlights

Less than 1 percent of plans posted negative results during the quarter.

Corporate plans saw the highest median return (+8.15 percent), followed by Public Plans (+7.45 percent).

US equities posted a quarterly median return of +13.55 percent, versus the Russell 3000 Index return of +14.04 percent. Non-US equities saw a median return of +10.78 percent, compared to the FTSE Developed x US Net Index result of 10.06 percent. US fixed income had a median return of +3.34 percent, versus the Barclays Capital US Aggregate Bond Index return of +2.94 percent. Non-US fixed income had a median return of +4.12 percent, versus the FTSE World Government Bond Non-US Index return of 1.52 percent. Real estate had a median return of +1.41 percent, versus the NCREIF Property Index result of +1.80 percent.



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