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Investing

BNY Mellon Master Trust Universe up 3.19% in quarter, 12.21% in year

Plans in the BNY Mellon U.S. Master Trust Universe returned a median 3.19% and 12.21% in the three and 12 months ended June 30, respectively.

The second quarter represented the seventh consecutive of positive overall performance, and third consecutive quarter of positive 12-month performance.

Among types of plans measured in the universe, corporate defined benefit plans posted the best second-quarter numbers, returning 3.72%, followed by public DB plans at 3.17%; foundations, 3.02%; endowments, 2.91%; health-care plans, 2.76%; and Taft-Hartley plans, 2.75%.

Corporate DB plans during the second quarter benefited primarily from the better returns of their domestic fixed-income investments than other types of plans.

Among the more notable asset classes across the entire universe, international equities led the way with a median return of 6.17% for the quarter ended June 30, followed by international fixed income with a median return of 3.47%, domestic equity at 3.09%, real estate at 1.98% and domestic fixed income at 1.62%.

The average asset allocation in the universe for the second quarter was 20% each domestic equity and domestic fixed income; 16% international equity; 10% private equity; 9% hedge funds; 7% real estate; 5% global equity; 3% cash; 2% each Treasury inflation-protected securities, other fixed income and other real assets; and 1% each global fixed income, international fixed income and other.

For the year ended June 30, endowments posted the highest median return at 12.89%, followed by Taft-Hartley plans at 12.73%, foundations at 12.59%, public DB plans at 12.51%, corporate DB plans at 11.06% and health-care plans at 10.45%. The best-performing asset class for the year was international equity at 20.59%, followed by domestic equity at 18.73%.

The BNY Mellon U.S. Master Trust Universe consists of 618 corporate, foundation, endowment, public, Taft-Hartley, and health-care plans.