First Quarter Canadian Plan Sponsor Returns Stay Positive with International Equity Leading the Way, According to BNY Mellon Canadian Master Trust Universe

Fourth straight quarter in the black for BNY Mellon Canadian Master Trust Universe; one-year gain of 11.22% tops ten-year average return

TORONTO, May 2, 2017 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +3.11% for the first quarter of 2017, marking the fourth straight quarter of positive results. The one-year return of +11.22% was above the Canadian Master Trust Universe's ten-year annualized return of +5.97% and marked the fourth consecutive quarter of positive one-year performance.

With a market value of more than $234.5 billion and an average plan size of $2.6 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 90 Canadian corporate, public and university pension plans. Additional insight of the Canadian Master Trust Universe data is provided by BNY Mellon's big data product, Asset Strategy View, and the Universe product extension, Asset Allocation Trust Universe. "With the additional insight of Asset Strategy View and the Asset Allocation Trust Universes, we can provide the marketplace with insights into sub-asset class information, such as the movement of investments to alternatives," said Tim Rourke, Vice President Relationship Management and Pension Practice Lead, CIBC Mellon.

"The Canadian plans are off to a healthy start for 2017 with 100% of the plans posting positive results and a median return of +3.11% for the first quarter. The Canadian Foundations & Endowments plans outperformed Canadian pension plans in the first quarter, gaining +3.68% followed by Canadian Universities' median returns which reported +3.23%," said Catherine Thrasher, Managing Director, Global Risk Solutions Canada, BNY Mellon Asset Servicing. "Both plan types benefitted from higher allocations to outperforming international equities, the top performing asset class for the first quarter with a median return of +7.74%. U.S. equity was the best performing asset class over the one year time horizon (+21.65%)."

Q1 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 exceeded the median of the BNY Mellon Canadian Master Trust Universe by 11 basis points for Q1 2017.
  • Canadian Foundations & Endowments plans saw the highest median return (+3.68%), followed by Canadian Universities (+3.23%);
  • Canadian equity posted a quarterly median return of +2.24%, versus the S&P/TSX Composite Index return of +2.41%. U.S. equity's median quarterly return of +5.55% outperformed as compared to the S&P 500 Index result of +5.48%. International equity and non-Canadian equity, with median returns of +7.74% and +6.80%, reported higher results versus the MSCI EAFE Index and MSCI World Index returns of +6.80% and +5.94%, respectively.
  • Further insight on international equities from the Asset Allocation Trust Universes indicate emerging markets equity posted the highest median results for the quarter, +11.46%, surpassing the MSCI Emerging Markets Index, +10.87%.
  • Fixed Income performance was positive during the first quarter with a median return of +1.46%, versus the FTSE TMX Canada Bond Universe Index return of +1.24%.
  • Alternative asset classes were led by infrastructure, reporting a median return of +2.81%, followed by hedge funds +2.02%, real estate +1.21% and private equity +1.14% in the first quarter as reported by the Asset Allocation Trust Universes.

BNY Mellon Canadian Master Trust Universe Median Plan Returns*







Universe Medians

1Q
2017
%

One-
Year
%

Three-
Years
%

Five-
Years
%

Ten-
Years
%

Canadian Master Trust Total Fund

3.11

11.22

7.88

9.66

5.97


Canadian Equity

2.24

18.60

6.80

10.25

5.37


U.S. Equity

5.55

21.65

16.62

20.35

9.09


International Equity

7.74

17.24

9.05

12.89

3.67


Non-Canadian Equity

6.80

19.03

12.07

16.02

6.04


Fixed Income

1.46

2.29

5.55

4.38

5.68


Real Estate

0.93

6.80

5.70

8.74


Canadian Foundations & Endowments

3.68

13.56

8.19

10.69

6.14

Canadian Universities

3.23

13.16

7.71

10.15

6.13


*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, exchange-traded fund services, pension services, securities lending services, foreign exchange processing and settlement, and treasury services. As at March 31, 2017, CIBC Mellon had more than C$1.7 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, 2017 had US$30.6 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

For further information: Jennifer Israel, Corporate Communications, CIBC Mellon, 416-643-6538, jennifer.israel@cibcmellon.com

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