Master Trust Universe Sees Positive Returns

Of the plans in the universe, 99% posted positive results for the three-month period ending June 30, 2009, according to a press release. Forty-one percent of the plans outperformed the custom policy return of 11.49% in the second quarter – a reduction compared to the percentage of outperforming plans reported last quarter (see Lower Equity Allocation Buoys Pension Returns in Q1 ).

Corporate pensions were the top performing plan type for the second quarter with an 11.69% median return, followed by foundations (11.32%), public (10.85%), Taft-Hartley (10.54%), endowments (9.63%), and health care plans (8.08%).

Non-U.S. equities led all asset classes for the quarter with a median return of 25.26%, outperforming the MSCI All Country World ex US Index return of 19%. U.S. equities returned 16.90%, compared to the Russell 3000 Index return of 16.82%.  

Non-U.S. fixed income posted a median return of 9.36%, ahead of the Citigroup Non-US Dollar World Government Bond Index return of 5.44%.  U.S. fixed income posted a result of 4.65%, versus the Barclays Capital U.S. Aggregate Bond Index return of 1.78%.  

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the second quarter was: U.S. equity 33%, U.S. fixed income 15%, non-U.S. equity 30%, non-U.S. fixed income 1%, alternative investments 2%, real estate 9%, cash 2%, and other (oil, gas, etc.) 8%.

With a market value of $897.5 billion and an average plan size of $1.47 billion, the BNY Mellon U.S. Master Trust Universe consists of 611 corporate, foundation, endowment, public, Taft-Hartley and health care plans.

BNY Mellon U.S. Master Trust Universe Median Plan Returns