The 2014 fourth quarter results for the BNY Mellon U.S. Master Trust Universe portray weak results for returns, with the median quarterly return at 1.62%.
This factor resulted in yearly performance for the typical fund of +6.6%, below the +14.3% returned in 2013. More favorable statistics from the quarter were evident in the 93% of plans that returned positive results, while 43% of plans matched or outperformed the custom policy return for Q4.
The BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, notes corporate plans recorded the highest median return (+2.36%), followed by Taft-Hartley plans (+1.56%). Senior Consultant for BNY Mellon’s global risk solutions group John Houser adds, “Corporate funds outpaced other plan types with a return of +8.56%, getting a boost from their relative over-weighting of U.S. equity holdings.” He continues, “Following behind corporates, endowment funds returned +6.51% on average, while Taft Hartley plans lagged all plan type at +5.62%.”
Additional results from Q4 include:
- U.S. equities posted a quarterly median return of +5.13%, and non-U.S. equities displayed a median return of -2.82%.
- U.S. fixed income had a median return of +1.35%, while non-U.S. fixed income had a median return of -1.79%.
- Real estate had a median return of +3.25%
BNY Mellon is a global investments company and its U.S. Master Trust Universe service consists of 644 corporate, foundation, endowment, public, Taft-Hartley, and health care plans with a market value of more than $2.7 trillion and an average plan size of $3.7 billion.