Equity markets rebounded in the fourth quarter.
TORONTO, Feb. 3, 2020 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +2.52% for the fourth quarter of 2019, reflecting an improved economic outlook for investors as compared to last quarter's performance. The one-year median return as of December 31, 2019 was +13.92%, while the median 10-year annualized return was +8.47%.
The BNY Mellon Canadian Master Trust Universe results are based on $253.1 billion worth of investment assets in Canadian investment plans, with the average plan size of $3.0 billion. The Universe is designed to provide peer comparisons by plan type and size, and it comprises 84 Canadian corporate, public and university pension plans. Additional insight into the plan results is provided by BNY Mellon's Asset Strategy View, and the Universe product extension, Asset Allocation Trust Universes.
"Equity markets displayed a rebound from economic slowdown around the globe, reporting higher positive performance in the fourth quarter as compared to the last quarter's returns. Continued market uncertainties led to fixed income reporting negative performance while alternative asset classes posted low, but positive results for the quarter," said Catherine Thrasher, Head of Strategic Client Solutions and Global Risk Solutions, CIBC Mellon and BNY Mellon.
Among non-traditional asset classes, Real Estate delivered the highest performance for the quarter, returning +1.88%. The one-year median return for the real estate class was +7.07%. Private equity investments delivered a quarterly median return of +1.41%, compared to +3.13% for the third quarter. The one-year median return for the private equity class was +6.72%.
Among traditional asset classes, the International Equity median posted the highest performance, with a quarterly median return of +6.83% and a one-year return of +16.93%. Fixed income returns were much lower this quarter, posting negative performance of -0.92%.
Q4 2019 Highlights of the BNY Mellon Canadian Master Trust Universe
- Canadian pension plans over $1 billion outperformed the median returns of the BNY Mellon Canadian Master Trust Universe by 8 basis points for Q4 2019.
- Canadian Foundations and Endowments posted the highest performance among plans for the fourth quarter of 2019, with median performance of +3.5%. Canadian Universities were not far behind, with a median return of +3.15%.
- The Fixed Income median return was -0.92% in the fourth quarter of 2019. Fixed Income underperformed relative to the FTSE Canada Bond Universe Index, which returned -0.85%.
- All of the equity segment returns were higher this quarter as compared to the third quarter of 2019, displaying positive results across the board.
- International Equity posted the highest quarterly median return, at +6.83%, well ahead of the MSCI EAFE Index return of +5.98%.
- Non-Canadian Equity performance was also higher, with a median return of +6.28%, but underperformed the MSCI World Index return of +6.44%.
- U.S. Equity median performance of +5.89% was also higher from last quarter but trailed the S&P 500 Index result of +6.83%.
- Canadian Equity performance was also higher from the third quarter, with a median return of +3.26% and ahead of the S&P/TSX Composite Index result of +3.17%.
- Further insight from the BNY Mellon Asset Allocation Trust Universes indicates that Emerging Markets Equity posted higher positive median performance for the quarter of +7.72% as compared to last quarter, but underperformed the MSCI Emerging Markets Index return of +9.62%.
- BNY Mellon Asset Allocation Trust Universes also provide insights regarding alternative asset classes. Real Estate reported a positive median return of +1.88%, followed by Private Equity which reported a positive median return of +1.41%. Hedge Fund performance was lackluster but still positive, returning +0.04% for the fourth quarter.
BNY Mellon Canadian Master Trust Universe Median Plan Returns*
Universe Medians |
4Q |
One- |
Three- |
Five- |
Ten- |
|
Canadian Master Trust Total Fund |
2.52 |
13.92 |
7.70 |
7.26 |
8.47 |
|
Canadian Equity |
3.26 |
18.99 |
6.50 |
6.41 |
7.72 |
|
U.S. Equity |
5.89 |
22.29 |
12.69 |
13.16 |
15.95 |
|
International Equity |
6.83 |
16.93 |
10.55 |
9.31 |
9.39 |
|
Non-Canadian Equity |
6.28 |
20.27 |
11.44 |
11.25 |
12.12 |
|
Fixed Income |
-0.92 |
8.13 |
4.45 |
4.29 |
5.53 |
|
Real Estate |
1.88 |
7.07 |
8.16 |
8.05 |
----- |
|
Canadian Foundations & Endowments |
3.50 |
14.24 |
7.43 |
7.01 |
8.57 |
|
Canadian Universities |
3.15 |
13.92 |
7.52 |
7.22 |
8.43 |
*All returns are posted gross of fee results, calculated in Canadian dollars. |
Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy. Some products or services are available only through BNY Mellon.
About CIBC Mellon
CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY Mellon) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services. As at December 31, 2019, CIBC Mellon had more than C$2 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at December 31, 2019 had US$35.8 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies.
For more information, including CIBC Mellon's latest knowledge leadership on issues relevant to institutional investors active in Canada, visit www.cibcmellon.com.
Media Contact:
Brent Merriman, Corporate Communications, CIBC Mellon, 416-643-5065 [email protected]
SOURCE CIBC Mellon
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