The median plan in the BNY Mellon U.S. Master Trust Universe returned 10.8% in the second quarter, its first positive return since fall 2007, according to a BNY Mellon news release.
Ninety-nine percent of plans included in the universe — which consists of 611 corporate, foundation, endowment, public, Taft-Hartley and health-care plans — posted positive returns.
Non-U.S. equities was the best-performing asset class with a median second-quarter return of 25.26%, outperforming the MSCI All Country World ex-U.S. index by 6.26 percentage points. U.S. equities returned a median 16.9%, ahead of the Russell 3000 index by eight basis points. Non-U.S. fixed income returned a median 9.36% and U.S. fixed income posted a median increase of 4.65%.
“All segments of the U.S. Master Trust Universe posted a positive return for the quarter, with corporate plans leading the charge with a result of 11.69%,” Greg Stewart, managing director and regional product manager of the BNY Mellon Asset Servicing, said in a news release. “Strong performance in the second quarter has more than offset the weak start to 2009 with all segments posting year-to-date returns in the three to five percent range.”
Foundations returned 11.32% in the quarter; public funds returned 10.85%; Taft-Hartley plans, 10.54%; and endowments, 9.63%.
The average asset allocation for the universe was 33% U.S. equity, 30% non-U.S. equity, 15% U.S. fixed income, 9% real estate, 8% other, 2% each for both alternative investments and cash and 1% non-U.S. fixed income.
The average asset mix for the second quarter represents a 16-percentage-point drop in U.S. fixed income and a 15-percentage-point increase in non-U.S. equities since the previous quarter. Alternatives dropped eight percentage points and real estate increased seven percentage points from the previous quarter.