Fourth Quarter Median Canadian Plan Sponsor Returns Remain Positive with 100 Per Cent of Plans Posting Positive One-Year Returns in 2017, According to BNY Mellon Canadian Master Trust Universe

All plans within the BNY Mellon Canadian Master Trust Universe produced positive results this past quarter

TORONTO, Feb. 2, 2018 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +4.29% for the fourth quarter of 2017, marking the seventh straight quarter of positive results. The one-year return of +9.83% was above the Canadian Master Trust Universe's 10-year annualized return of +6.68% and also marks the seventh consecutive quarter of positive one-year performance.

With a market value of more than $241.9 billion and an average plan size of $2.7 billion, the BNY Mellon Canadian Master Trust Universe is a fund-level tracking service that can be used to make peer comparisons of performance by plan type and size. It consists of 88 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.

"Canadian pension plans and asset owners can benefit from sub-asset class insights offered in the BNY Mellon Canadian Master Trust Universe, which can be used for peer group analysis, manager analysis and to supplement benchmark comparisons," said Tim Rourke, Vice President, Segment Lead, Pensions and Asset Owners, CIBC Mellon.

"Canadian plans remained positive in the fourth quarter of 2017 with 100% of the plans posting positive results and a median return for the quarter of +4.29%, with a 2017 one-year median return of +9.83%. Canadian Universities posted a median return in the fourth quarter of +4.22% and the highest one year median return results at +10.40%. Canadian Foundations and Endowments followed closely with median returns of +4.11% in the fourth quarter and +10.03% for the one-year time period," said Catherine Thrasher, Managing Director, Global Risk Solutions Canada, BNY Mellon Asset Servicing. "The top performing asset class in the fourth quarter was U.S. Equity with a median return of +6.65%. International Equity was the best performing asset class over the one-year time horizon (+20.01%). The weakest performing asset class in the fourth quarter was Real Estate with a median return of +2.39% and Fixed Income for the one-year time horizon with a median return of +3.27%."

Q4 2017 Highlights of the BNY Mellon Canadian Master Trust Universe

• 100% of plans posted positive results during the quarter. Median returns for plans over $1 billion outperformed the median of the BNY Mellon Canadian Master Trust Universe by three basis points for Q4 2017.
• Canadian Universities posted the highest median return for the fourth quarter at +4.22%, followed by Canadian Foundations and Endowments with a median return of +4.11%.
• Canadian Equity posted a quarterly median return of +4.30%, versus the S&P/TSX Composite Index return of +4.45%. U.S. Equity's median quarterly return of +6.65% fell short of the S&P 500 Index result of +6.84%. International Equity and Non-Canadian Equity, with median corresponding returns of +5.45% and +6.03%, had surpassed index results of the MSCI EAFE Index and MSCI World Index returns of +4.46% and +5.81% respectively.
• Further insight from the BNY Mellon Asset Allocation Trust Universes indicate Emerging Markets Equity posted the highest median return for the quarter (+7.03%), followed closely by U.S. Large Cap Equity (+6.75%).  Canadian Long Duration Fixed Income (+5.20%) was the top performing Canadian fixed income sub-asset class in the fourth quarter.
• Fixed Income produced a median return of +2.98% in the fourth quarter, which surpassed the FTSE TMX Canada Bond Universe Index return of +2.02%. 
• Alternative asset classes were led by Private Equity, reporting a median return of +4.42%, followed by Infrastructure +3.04%, Real Estate +2.39%, and Hedge Funds 2.20% in the fourth quarter, as reported by the BNY Mellon Asset Allocation Trust Universes.

BNY Mellon Canadian Master Trust Universe Median Plan Returns*

Universe Medians		4Q  2017 %	One- Year %	Three- Years %	Five- Years %	Ten- Years %
Canadian Master Trust Total Fund		4.29	9.83	7.93	10.11	6.68
	Canadian Equity	4.30	9.33	7.36	10.55	5.47
	U.S. Equity	6.65	13.80	14.05	21.34	11.26
	International Equity	5.45	20.01	12.33	14.37	5.71
	Non-Canadian Equity	6.03	17.62	13.38	17.68	8.04
	Fixed Income	2.98	3.27	3.89	4.23	5.90
	Real Estate	2.39	8.04	6.35	7.10
Canadian Foundations & Endowments		4.11	10.03	8.00	10.40	6.95
Canadian Universities		4.22	10.40	8.29	10.29	6.82

*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 December 31, 2017 had US$33.3 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. www.cibcmellon.com

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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