Equity market sell off results in lowest median quarterly return since Q4 2008
NEW YORK, May 18, 2020 /PRNewswire/ -- The BNY Mellon U.S. Master Trust Universe returned a median -10.9% in the first quarter of 2020, reversing the trend of positive quarterly performance throughout 2019.
The BNY Mellon U.S. Master Trust Universe offers peer comparisons of performance by plan type and size. It consists of 519 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a total market value of more than $1.9 trillion and an average plan size of over $6.4 billion. In aggregate, U.S. Master Trust Universe plans reported a one-year return of -2.65%, trailing the 3-year annualized return of +3.71% and 5-year annualized return of +4.01% respectively.
Corporate Plans were the highest performing plan type for the quarter, benefitting from their higher allocations to U.S. Fixed Income than other plan types. Foundations underperformed other plan types due to having the lowest allocation to fixed income of any plan type.
"In the first quarter of 2020, U.S. Fixed Income was the highest performing asset class, overweighting its peers by 22%. Due to Corporate Plans tendency to allocate more assets to Fixed Income than other plan types, this overweight resulted in Corporate Plans being the top performing plan type for the quarter," said Frances Barney, CFA, Head of Global Risk Solutions at BNY Mellon.
Additional Q1 Highlights
Less than 5% of plans posted positive results during the quarter
Corporate Plans saw the highest median return (-8.64%), followed by Endowments (-11.54%)
U.S. equities posted a quarterly median return of -21.28%, versus the Russell 3000 Index return of -20.90%. Non-U.S. equities saw a median return of -23.64%, compared to the FTSE Developed ex U.S. Net Index result of -23.17%. U.S. fixed income had a median return of +0.51%, versus the Barclays Capital U.S. Aggregate Bond Index return of +3.15%. Non-U.S. fixed income had a median return of -12.19%, versus the FTSE World Government Bond Non-US Index return of -1.88%. Real estate had a median return of +1.34%, versus the NCREIF Property Index result of +0.71%.
BNY Mellon U.S. Master Trust Universe users are now able to take advantage of BNY Mellon Asset Strategy View® as a separate service for additional analysis. BNY Mellon Asset Strategy View layers big data analytics onto detailed asset allocation, performance, and cash flow data for the majority of the BNY Mellon U.S. Master Trust Universe. It provides additional insight into underlying market trends and investor activity.
BNY Mellon U.S. Master Trust Universe Median Plan Returns*
Period Ending March 31, 2020
Master Trust Total Fund
Health Care Plans
*All returns are posted gross of fee results.
BNY Mellon Asset Allocation Medians of those invested by Asset Class
Period Ending March 31, 2020
One Year Ago
US Fixed Income
Global Fixed Income
Non-US Fixed Income
TIPS/Inflation Linked Bonds
Other Real Assets
ABOUT BNY MELLON
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. As of March 31, 2020, BNY Mellon had $35.2 trillion in assets under custody and/or administration, and $1.8 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). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
Barclays Capital U.S. Aggregate Bond Index
© Barclays Bank PLC 2016. This data is provided by Barclays Bank PLC all rights are reserved.
FTSE Non-US World Government Bond, FTSE Developed x US Index, Russell 3000 Index:
Source: London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" "Russell®", are trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written
Contact: Paul Patella
BNY Mellon Asset Servicing
+1 212 635 1378
SOURCE BNY Mellon Asset Servicing