Plans in the BNY Mellon U.S. Master Trust Universe returned a median 1.96% in the second quarter, marking the third consecutive quarter of positive performance.
For the 12 months ended June 30, the universe returned a median 0.55%, making it the first quarter with positive 12-month performance since the second quarter of 2015.
Corporate defined benefit plans posted the highest quarterly return among all plan types at 2.81%, followed by health-care plans at 2.01%, public DB plans, 1.86%; Taft-Hartley plans, 1.82%; foundations, 1.59%; and endowments, 1.46%.
Corporate plans benefited from a higher allocation to U.S. fixed income, which returned a median 2.6% for the universe in the second quarter, said Frances Barney, managing director, head of consulting — Americas for global risk solutions, in a news release on the results. Steven Miller, senior consultant at BNY Mellon Asset Servicing, added in an e-mail that corporate plans also benefited from the longer duration of their fixed-income portfolios.
All asset classes posted median positive returns for the plans in the second quarter, with the exception of non-U.S. equities, which returned a median -0.17%. By contrast, U.S. equities returned a median 2.12%; international fixed income, 4.25%; real estate, 2.27%.
Corporate DB plans were also the top-performing plan type for the year, returning 3.04%, followed by public DB plans at 0.91%; Taft-Hartley plans, 0.43%; health-care plans, 0.39%; foundations, -1.17%; and endowments, -1.18%.
For the five and 10 years ended June 30, the universe returned an annualized median 6.44% and 5.7%, respectively.
The universe comprises 645 plans with a combined market value of more than $2 trillion and an average plan size of $5 billion.