First Quarter 2018 Median Canadian Plan Sponsor Returns Remain Positive Despite Negative Canadian Equity Returns, According to BNY Mellon Canadian Master Trust Universe

65 per cent of plans within the BNY Mellon Canadian Master Trust Universe produced positive results this past quarter 

TORONTO, May 4, 2018 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +0.37% for the first quarter of 2018, marking the eighth straight quarter of positive results. The one-year return of +6.88% was in line with the Canadian Master Trust Universe's 10-year annualized return of +6.99% and also marks the eighth consecutive quarter of positive one-year performance.

With a market value of more than $242.3 billion and an average plan size of $2.8 billion, the BNY Mellon Canadian Master Trust Universe can be used to make peer comparisons of performance by plan type and size. It consists of 85 Canadian corporate, public and university pension plans. Additional insight into the Canadian Master Trust Universe data is provided by BNY Mellon's Asset Strategy View, and the Universe product extension, Asset Allocation Trust Universe.

"Sub-asset class performance data offered through the BNY Mellon Canadian Asset Allocation Trust Universe can be beneficial for Canadian asset owners, by assisting with owner insight into peer group data and supporting analysis of investment managers," said Michael Garneau, Vice President, Relationship Management, Eastern Canada, CIBC Mellon.

"Canadian plans remained positive in the first quarter of 2018 with 65% of plans posting positive results and a median return for the quarter of +0.37%, with a 2018 one-year median return of +6.88%. Canadian Universities posted a median return in the first quarter of +0.26% and one-year median return results at +6.72%. Canadian Foundations and Endowments posted a negative median return of -0.07% in the first quarter, and +6.04% for the one-year time period," said Catherine Thrasher, Managing Director, Global Risk Solutions Canada, BNY Mellon Asset Servicing. "The top performing asset classes in the first quarter were U.S. Equities and Non-Canadian Equities with a median return of +2.38% and +2.37% respectively. International Equity was the best performing asset class over the one-year time horizon (+13.05%). The weakest performing asset class in the first quarter was Canadian Equities with a median return of -2.98% and Fixed Income for the one-year time horizon with a median return of +2.62%."

Q1 2018 Highlights of the BNY Mellon Canadian Master Trust Universe

• 65% of plans posted positive results during the quarter. Median returns for plans over $1 billion outperformed the median return of the BNY Mellon Canadian Master Trust Universe by 14 basis points for Q1 2018.
• Canadian Universities posted a median return for the first quarter at +0.26%, while Canadian Foundations and Endowments lagged behind with a median return of -0.07%.
• Canadian Equity posted a quarterly median return of -2.98%, versus the S&P/TSX Composite Index return of -4.52%. U.S. Equity's median quarterly return of +2.38% surpassed the S&P 500 Index result of +2.12%. International Equity and Non-Canadian Equity, with median corresponding returns of +2.35% and +2.37%, had surpassed index results of the MSCI EAFE Index and MSCI World Index returns of +1.44% and +1.71% respectively.
• Fixed Income produced a median return of +0.18% in the first quarter, which outperformed the FTSE TMX Canada Bond Universe Index return of +0.10%.
• Further insight from the BNY Mellon Asset Allocation Trust Universes indicate Emerging Markets Equity posted the highest median return for the quarter (+2.99%), followed closely by Global Equity (+2.17%). Canadian Corporates (+0.37%) was the top performing Canadian fixed income sub-asset class in the first quarter of 2018.
• Alternative asset classes were led by Infrastructure, reporting a median return of +5.49%, followed by Private Equity (+5.10%), Hedge Funds (3.37%), and Real Estate (+1.94%) in the first quarter, as reported by the BNY Mellon Asset Allocation Trust Universes. 

BNY Mellon Canadian Master Trust Universe Median Plan Returns*

Universe Medians		1Q 2018 %	One- Year %	Three- Years %	Five- Years %	Ten- Years %
Canadian Master Trust Total Fund		0.37	6.88	5.72	9.15	6.99
	Canadian Equity	-2.98	3.61	5.21	9.05	5.51
	U.S. Equity	2.38	11.08	10.85	18.69	12.40
	International Equity	2.35	13.05	8.44	13.33	6.52
	Non-Canadian Equity	2.37	12.10	9.70	15.72	9.08
	Fixed Income	0.18	2.62	1.83	4.10	5.62
	Real Estate	1.93	7.20	6.85	6.93
Canadian Foundations & Endowments		-0.07	6.04	6.23	9.35	7.29
Canadian Universities		0.26	6.72	6.42	9.02	6.95

*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, 2017, CIBC Mellon had more than C$1.9 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 March 31, 2018 had US$33.5 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.

SOURCE CIBC Mellon

Jennifer Israel, Corporate Communications, CIBC Mellon, 416-643-6538, [email protected]

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