Third Quarter Plan Sponsor Returns Stay Positive with Non-US Equity Continuing to Lead the Way, according to BNY Mellon U.S. Master Trust Universe/Asset Strategy View
While performance was strong across all plan types, Public Plans reported the highest median return, climbing +3.55% for the BNY Mellon
"Public Pensions benefited from a higher allocation to Non-US Equity investments versus other plan types, 19.82% versus 16.15% for the Master Trust Universe as a whole," said
"Health Care plan performance lagged other plan types due to lower allocations to Non-US Equity, while all asset classes continued to post positive results on a one-year basis in the third quarter," she added.
The BNY Mellon
"Non-
Q3 Highlights
- Over 99% of plans posted positive results during the quarter
- Public Plans saw the highest median return (+3.55%), followed by Foundations (+3.46%)
U.S. equities posted a quarterly median return of +4.53%, versus the Russell 3000 Index return of +4.57%. Non-U.S. equities saw a median return of +6.07%, compared to the Russell Developed exU.S. Large Cap Index result of +5.75%.U.S. fixed income had a median return of 1.15%, versus the Barclays CapitalU.S. Aggregate Bond Index return of +0.85%. Non-U.S. fixed income had a median return of +2.85%, versus the Citigroup Non-U.S. World Government Bond Index return of +2.57%. Real estate had a median return of +1.88%, versus the NCREIF Property Index result of +1.70%
BNY Mellon
The average asset allocation in the BNY Mellon Asset Allocation Universes for the third quarter was: US Equity 26%, Non-US Equity 17%, Global Equity 9%, US Fixed Income 24%, Global Fixed Income 3%, Non-US Fixed Income 2%, TIPS/Inflation Linked Bonds 4%, Real Estate 6%, Private Equity 11%, Other Real Assets 3%, Hedge Funds 17%, and Cash 4%. Average based on those that are invested.
BNY Mellon U.S. Trust Universe Median Plan Returns*
Period Ending |
|||||
Universe |
Number of Participants |
3Q |
One- Year |
Five- Years |
Ten-Years |
|
731 |
3.19 |
11.82 |
8.26 |
5.42 |
Corporate Plans |
307 |
3.16 |
10.38 |
8.07 |
5.66 |
Foundations |
98 |
3.46 |
12.39 |
7.98 |
4.97 |
Endowments |
91 |
3.32 |
12.52 |
8.35 |
5.14 |
Public Plans |
139 |
3.55 |
12.40 |
8.60 |
5.47 |
Taft-Hartley Plans |
66 |
3.26 |
11.86 |
8.44 |
5.59 |
Health Care Plans |
19 |
3.01 |
10.85 |
7.22 |
4.76 |
*All returns are posted gross of fee results.
BNY Mellon
Period Ending
Asset Class |
One Year Ago |
Three Years Ago |
|
Q3 2017 |
|||
US Equity |
26% |
27% |
25% |
Non-US Equity |
17% |
16% |
14% |
Global Equity |
9% |
10% |
11% |
US Fixed Income |
24% |
24% |
23% |
Global Fixed Income |
3% |
5% |
6% |
Non-US Fixed Income |
2% |
3% |
1% |
TIPS/Inflation Linked Bonds |
4% |
4% |
4% |
Real Estate |
6% |
6% |
4% |
Private Equity |
11% |
11% |
12% |
Other Real Assets |
3% |
4% |
2% |
Hedge Funds |
17% |
18% |
18% |
Cash |
4% |
5% |
5% |
Russell 3000 Index and Russell Developed ex US Large Cap Index:
*****
Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.
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