Master Trusts See Positive Q3 2010

The median return of the BNY Mellon Master Trust Universe was 8.48% for the third quarter of 2010, reversing course from the -4.87 % return reported for Q2.

With the rebound, the median return is 6.70% on a year-to-date basis and 10.32% for the twelve months ending September 30, 2010.  

According to a press release, 100% of plans posted positive results for the quarter ending September 30, 2010.  All but a single plan (99.85%) also saw positive returns on a year-to-date basis. Less than 25% of plans matched or outperformed the custom policy return of 9.56% for the third quarter, a significant drop compared to Q2. Year-to-date, a more typical 84% of plans met or exceeded the policy return of 5.29%.

Corporate plans were the leading performer for the third quarter, posting a median return of 8.95%, closely followed by public funds, Taft Hartley, health care, and foundations and endowments.

Non-U.S. equities were the dominant asset class for the quarter with the median return up 16.29% compared to the MSCI World ex USA return of 16.21%, the press release said. U.S. equities posted 11.58% for the quarter with the Russell 3000 Index up 11.53%.  The median return for non-U.S. fixed income was 8.59% compared to the Citigroup Non-U.S. World Government Bond Index return of 10.45%.  U.S. fixed income was the lowest performing asset class for the quarter with a median return of 3.51%, versus the Barclays Capital U.S. Aggregate Bond Index return of 2.48%.  
  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The average asset allocation in the BNY Mellon U.S. Master Trust Universe for the third quarter was: U.S. equity 32%, U.S. fixed income 28%, non-U.S. equity 17%, non-U.S. fixed income 2%, alternative investments 10%, real estate 2%, cash 1%, and other (oil, gas, etc.) 8%.  

With a market value of $1.19 trillion and an average plan size of $1.64 billion, the BNY Mellon U.S. Master Trust Universe consists of 728 corporate, foundation, endowment, public, Taft-Hartley and health care plans.

«