Strong Equity Performance Propels Q3 Returns for BNY Mellon U.S. Master Trust Universe
Median plan rebounds from Q2 losses; Up 16% over last 12 months
NEW YORK, Noember. 13, 2012 — The median return of the BNY Mellon U.S. Master Trust Universe was 4.66% for the third quarter of 2012, driving up performance for the typical fund to 10.45% on a year-to-date basis. Given the strong quarter, the median plan climbed 15.97% over the twelve months ending September 30, 2012.
With a market value of more than $2.2 trillion and an average plan size of $3.3 billion, the BNY Mellon U.S. Master Trust Universe is a fund-level tracking service that can be used to make peer comparisons of both performance and asset allocation results. The Universe consists of more than 680 corporate, foundation, endowment, public, Taft-Hartley and health care plans.
"The third quarter rewarded investors who assumed additional risk," said John Houser, vice president and manager of performance & risk analytics for BNY Mellon. "Markets responded to moves by both the Fed's QE3 promise and European Central Bank's commitment to preserve the euro. Bond markets posted respectable returns in the quarter as global concerns continued to push demand for lower risk bonds.
"All asset classes were positive in Q3 but equities drove returns, with international equity setting the high water mark at 7.32% and U.S. equities up 6.19% for the period. Over the full year, U.S. equities have significantly outperformed bonds with a 29.24% median return," Houser added.
The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 28%, U.S. fixed income 28%, non-U.S. equity 15%, non-U.S. fixed income 2%, real estate 2%, cash 1%, and alternatives/other 24%.
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BNY Mellon (NYSE: BK) is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $27.9 trillion in assets under custody and administration and $1.4 trillion in assets under management, services $11.6 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Learn more at www.bnymellon.com or follow us on Twitter@BNYMellon.
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