BNY Mellon U.S. Master Trust Universe Reverses Q2 Dip

The median plan in the BNY Mellon U.S. Master Trust Universe returned 4.47% in the third quarter of 2013, reversing a slight negative dip of 0.05% in the second quarter. Year over year, plans are up a median of 11.63%.

Public funds fared the best, returning 4.89%, followed by foundation plans at 4.88%. In all, 99% of the plans that make up the Universe saw positive returns during the third quarter, and 48% matched or outperformed the custom policy return.

On average, U.S. equities made up the largest percentage of plans’ assets in the second quarter at 28%, followed by U.S. fixed income at 25%. Yet non-U.S. equities had the highest quarterly gains of 9.9%, compared to 6.8% for U.S. equities. Meanwhile, fixed income only returned 0.69%.

“Public plans benefited during the quarter from a relative overweighting of non-U.S. equities compared to other plan types,” said John Gruber, head of product strategy for BNY Mellon’s Global Risk Solutions group. “The difference between their performance (+4.89%) and the lowest performing plan type was a significant 67 basis points. Still, all but six plans within the Universe saw positive returns for Q3.”

The BNY Mellon U.S. Master Trust Universe tracks a composition of 613 corporate, foundation, endowment, public, Taft-Hartley and health care plans, totaling more than $2.3 trillion and with an average plan size of $3.8 billion.