OREANDA-NEWS. The median return of the BNY Mellon U.S. Master Trust Universe, a fund-level tracking service, was essentially flat for the second quarter of 2015, down a scant 0.02 percent. The one-year return of +2.95%, however, was well below the five-year annualized return of +10.36%.

With a market value of more than $2.3 trillion and an average plan size of $3.6 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 623 corporate, foundation, endowment, public, Taft-Hartley, and health care plans.

"In a fairly flat environment, endowments topped other plan-types with a +0.58% return in Q2 due to their relative performance within the U.S. and non-U.S. fixed income segments," said John Houser, senior consultant for BNY Mellon's Global Risk Solutions group. "Looking at asset classes, investors found some gains during the quarter within non-U.S. equities (+1.12%) and real estate (+3.18%). Over the one-year period, real estate easily outpaced all asset classes with a +13.18% return, continuing its run of more than five years of positive quarterly results."

Q2 Highlights

  • 48% of plans in the BNY Mellon Master Trust universe returned positive results during the quarter;
  • Endowments recorded the highest median return (+0.58%), followed by Taft Hartley plans (+0.30%);
  • U.S. equities posted a quarterly median return of +0.25%, versus the Russell 3000 Index return of +0.14%. Non-U.S. equities saw a median return of +1.12%, ahead the Russell Developed ex U.S. Large Cap Index result of +0.80%. U.S. fixed income had a median return of -1.36%, versus the Barclays Capital U.S. Aggregate Bond Index return of -1.68%. Non-U.S. fixed income had a median return of -0.69%, versus the Citigroup Non-U.S. World Government Bond Index return of -1.54%. Real estate had a median return of +3.18%, versus the NCREIF Property Index result of +3.14%.

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the second quarter was: U.S. equity 26%, U.S. fixed income 25%, non-U.S. equity 17%, non-U.S. fixed income 2%, real estate 4%, cash 1%, and alternatives/other 25%.

BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).