Strong Equity Performance Propels Q3 Returns for BNY Mellon U.S. Master Trust
Median plan rebounds from Q2 losses; Up 16% over last 12 months
NEW YORK, Nov. 13, 2012
NEW YORK, Nov. 13, 2012 /PRNewswire/ --The median return of the BNY Mellon
U.S. Master Trust Universe was 4.66% for the third quarter of 2012, driving up
performance for the typical fund to 10.45% on a year-to-date basis. Given the
strong quarter, the median plan climbed 15.97% over the twelve months ending
September 30, 2012.
With a market value of more than $2.2 trillion and an average plan size of
$3.3 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 more than 680
corporate, foundation, endowment, public, Taft-Hartley and health care plans.
"The third quarter rewarded investors who assumed additional risk," said John
Houser, vice president and manager of performance & risk analytics for BNY
Mellon. "Markets responded to moves by both the Fed's QE3 promise and
European Central Bank's commitment to preserve the euro. Bond markets posted
respectable returns in the quarter as global concerns continued to push demand
for lower risk bonds.
"All asset classes were positive in Q3 but equities drove returns, with
international equity setting the high water mark at 7.32% and U.S. equities up
6.19% for the period. Over the full year, U.S. equities have significantly
outperformed bonds with a 29.24% median return," Houser added.
o99% of plans in the BNY Mellon Master Trust universe returned positive
results during the quarter. Over the prior 12-month period, 99% (649 out
of 650) of plans were in the black.
o55% of plans matched or outperformed the custom policy return for Q3. For
the full year, 23% of plans outperformed the custom policy.
oCorporate plans recorded the highest median return (+4.94%) for the
quarter, followed closely by Public Plans (+4.80). The difference between
the best performing and lowest performing plan type (Endowments) was only
0.77 percentage points.
oNon-U.S. equities posted a quarterly median return of 7.32%, behind the
Russell Developed ex US Large Cap Index result of 7.76%. U.S. equities
posted a median return of 6.19%, versus the Russell 300o Index return of
6.23%. Non-U.S. fixed income posted a median return of 4.64%, compared to
the Citigroup Non-U.S. World Government Bond Index return of 3.98%. U.S.
fixed income had a median return of 2.65%, versus the Barclays Capital
U.S. Aggregate Bond Index return of 1.59%. Real estate posted a median
return of 2.40%, versus the NCREIF Property Index result of 2.34%.
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for
the second quarter was: U.S. equity 28%, U.S. fixed income 28%, non-U.S.
equity 15%, non-U.S. fixed income 2%, real estate 2%, cash 1%, and
BNY Mellon Asset Servicing offers clients worldwide a broad spectrum of
specialized asset servicing capabilities, including custody and fund services,
securities lending, performance and analytics, and execution services. BNY
Mellon Asset Servicing provides services through BNY Mellon and other related
BNY Mellon (NYSE: BK) is a global financial services company focused on
helping clients manage and service their financial assets, operating in 36
countries and serving more than 100 markets. BNY Mellon is a leading provider
of financial services for institutions, corporations and high-net-worth
individuals, offering superior investment management and investment services
through a worldwide client-focused team. It has $27.9 trillion in assets under
custody and administration and $1.4 trillion in assets under management,
services $11.6 trillion in outstanding debt and processes global payments
averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank
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BNY Mellon U.S. Master Trust Universe Median Plan Returns*
Period Ending September 30, 2012
Universe Number of 3Q One- Five- Ten-Years
Participants 2012 Year Years
Master Trust Total Fund 684 4.66 15.97 2.32 8.05
Corporate Plans 235 4.94 17.45 2.88 8.55
Foundations 81 4.43 14.48 1.71 8.08
Endowments 82 4.17 13.26 1.99 8.34
Public Plans 107 4.80 16.66 2.44 7.78
Taft-Hartley Plans 73 4.48 15.95 2.25 6.72
Health Care Plans 13 4.42 13.87 N/A N/A
Universe Custom Composite Benchmark 4.51 18.46 3.33 7.66
*All returns are posted gross of fee results.
BNY Mellon U.S. Master Trust Universe Median Allocations by Asset Class
Period Ending September 30, 2012
One Three Five
Q3 Q2 Year Years Years
2012 2012 Ago Ago Ago
U.S. equity 28% 29% 29% 34% 36%
U.S. fixed income 28% 27% 29% 27% 23%
Non-U.S. equity 15% 16% 15% 17% 20%
Non-U.S. fixed income 2% 2% 2% 1% 1%
Real estate 2% 2% 2% 8% 2%
Cash 1% 1% 2% 1% 1%
Alternatives/Other 24% 23% 21% 12% 17%
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 2012. This data is provided by Barclays Bank PLC all rights are
Citigroup Non-US World Government Bond Index: © Citigroup Global Markets Inc.,
2012. All rights reserved.
SOURCE BNY Mellon
Contact: Joseph F. Ailinger Jr., +1-617-722-7571, firstname.lastname@example.org
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