Traditional Asset Classes Lead Canadian Plans to Post Strong Returns in Q4 2021, According to BNY Mellon Canadian Master Trust Universe

Canadian plans end 2021 recording a seventh consecutive quarter of positive returns

TORONTO, Feb 3, 2022 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +4.11% for the fourth quarter of 2021. These results mark the seventh consecutive positive quarterly median return following the initial pandemic reaction in Q1 2020. The one-year median return as of December 31, 2021 was +9.48%, while the median 10-year annualized return was +9.39%. 

The BNY Mellon Canadian Master Trust Universe results are based on $309.1 billion worth of investment assets in Canadian investment plans, with the average plan size of $3.7 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.

"Despite ongoing challenges from the Omicron variant, global inflationary concerns, and the expected tightening of monetary policy, Canadian plan sponsors posted strong returns across all traditional asset classes this quarter," said David Cohen, Director, Manager of GRS Consulting with BNY Mellon Global Risk Solutions. "The BNY Mellon Canadian Master Trust Universe median return was positive, led by Canadian and U.S. Equities for this quarter and all of 2021."

Among traditional asset classes, the U.S. Equity Universe median posted the highest performance, with a quarterly median return of +7.35%. International Equity returns were the lowest, posting a quarterly return of 1.95%.

With respect to non-traditional asset classes, Real Estate delivered the highest performance, with a quarterly median return of +4.31%. Private Equity ended the quarter with a median return of +3.25% while Hedge Funds delivered flat performance for the quarter returning 0.03%.

Q4 2021 Highlights of the BNY Mellon Canadian Master Trust Universe

• The BNY Mellon Canadian Master Trust Universe of Canadian pension plans over $1 billion underperformed the median return of the Canadian Master Trust Universe in Q4 2021.
• Canadian Foundations and Endowments posted a median performance of 4.50% for the fourth quarter.
• All of the major equity segments posted healthy positive returns.
• Canadian Equity posted a median return of +6.20% in the fourth quarter, ahead of the S&P/TSX Composite Index return of +3.06%.
• U.S. Equity posted a quarterly median return of +7.35%, outperforming the S&P 500 Index return of +2.88%.
• Non-Canadian Equity reported a positive median return of +5.39% in Q4, exceeding the MSCI World Index return of +2.71%.
• International Equity posted a quarterly median return of +1.95%, behind the MSCI EAFE Index return of 3.52%
• The Fixed Income median return was 2.33% in the fourth quarter of 2021. Fixed Income outperformed relative to the FTSE Canada Universe Bond Index for the fourth quarter, which returned 1.67%.
• Further insight from the BNY Mellon Asset Allocation Trust Universes indicates that Emerging Markets Equity posted negative median performance for the quarter of -0.77%, behind the MSCI Emerging Markets Index return of 0.36%.
• BNY Mellon Asset Allocation Trust Universes also provide insights regarding alternative asset classes. Private Equity reported a positive quarterly median return of +3.25% for the fourth quarter and Real Estate reported a quarterly median return of +4.31%. Hedge Funds reported a return of 0.03%.

BNY Mellon Canadian Master Trust Universe Median Plan Returns*

Universe Medians	4Q 2021	One- Year	Three- Years	Five- Years	Ten- Years
Canadian Master Trust Total Fund	4.11	9.48	11.40	8.45	9.39
Canadian Equity	6.20	23.67	15.60	9.70	10.34
U.S. Equity	7.35	22.79	20.56	15.24	18.46
International Equity	1.95	7.44	12.31	9.91	11.71
Non-Canadian Equity	5.39	15.14	16.78	12.69	14.56
Fixed Income	2.33	-2.31	5.37	4.20	4.38
Real Estate	4.31	13.14	6.48	7.52	8.56
Canadian Foundations & Endowments	4.50	13.61	12.97	9.62	9.77

*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 dedicated to helping Canadian institutional investors and international institutional investors into Canada service their financial assets throughout the investment lifecycle. 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 delivers informed investment services for investment funds, pension plans, insurance companies, banks, foundations, endowments, corporations, and global financial institutions whose clients invest in Canada. As at December 31, 2021, CIBC Mellon had more than C$2.6 trillion in assets under administration. CIBC Mellon is part of the BNY Mellon network, which as at December 31, 2021 had US$46.7 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:
Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, [email protected]

SOURCE CIBC Mellon

Media Contact: Alexandra DeCata, Corporate Communications, CIBC Mellon, 416-643-6126, [email protected]