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Canadian Plan Sponsors Post Ninth Consecutive Quarter of Positive Median Returns

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Canadian Plan Sponsors Post Ninth Consecutive Quarter of Positive Median Returns

Canada NewsWire

All plans within the BNY Mellon Canadian Master Trust Universe produced positive returns in the second quarter of 2018. 

TORONTO, Aug. 1, 2018 /CNW/ - The median return of the BNY Mellon Canadian Master Trust Universe, a BNY Mellon Global Risk Solutions fund-level tracking service, was +2.16% for the second quarter of 2018, marking the ninth straight quarter of positive results. The one-year median return was +7.59%, while the median 10-year annualized return was +7.14%.

The BNY Mellon Canadian Master Trust Universe results are based on $242.9 billion worth of investment assets in Canadian investment plans, with the average plan size of $2.9 billion. The Universe is designed to provide peer comparisons by plan type and size, and it comprises 83 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 Universe.

"All Canadian plans had positive returns in the second quarter of 2018. The median return for the quarter was +2.16%, and +2.53% for the first half of 2018. Canadian Universities posted a median return in the second quarter of +2.05%, and +2.45% for the year-to-date. Canadian Foundations and Endowments posted a positive median return of +2.61% in the second quarter, and +2.46% since the start of 2018," said Catherine Thrasher, Strategic Client Solutions and Global Risk Solutions, CIBC Mellon and BNY Mellon. "Most asset classes posted positive returns for the quarter. Canadian and U.S. Equities were the top performing asset classes, with median returns of +5.48% and +5.24% respectively. International and Non-Canadian Equity medians returned +0.44% and +2.31% respectively, assisted by the declining value of the Canadian dollar. Emerging Markets was the only asset class that recorded a negative median return at -6.20%. Fixed Income produced a median quarter return of +0.74%."

Q2 2018 Highlights of the BNY Mellon Canadian Master Trust Universe

  • All 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 15 basis points for Q2 2018.
  • Canadian Foundations and Endowments posted a median return of +2.61%, while Canadian Universities posted a median return of +2.05% for the second quarter of 2018.
  • Most equity segment returns were positive, however, they all trailed behind their benchmark index. Canadian Equity posted a quarterly median return of +5.48%, falling short of the S&P/TSX Composite Index return of +6.77%. The U.S. Equity median quarterly return of +5.24% also trailed the S&P 500 Index result of +5.54%. International Equity and Non-Canadian Equity, with median corresponding returns of +0.44% and +2.31%, fell short of the MSCI EAFE Index and MSCI World Index returns of +1.05% and +4.00% respectively.
  • Further insight from the BNY Mellon Asset Allocation Trust Universes indicate that Emerging Markets Equity posted a negative median return for the quarter of -6.20%, trailing the MSCI Emerging Markets index return of -5.98%.
  • The Fixed Income median return was +0.74% in the second quarter, outperforming the FTSE TMX Canada Bond Universe Index return of +0.51%.
  • BNY Mellon Asset Allocation Trust Universes also provides insights regarding alternative asset classes. Private Equity reported a median return of +4.23%, followed by Real Estate at +2.45%, and Hedge Funds at +2.41% for the quarter.

BNY Mellon Canadian Master Trust Universe Median Plan Returns*







Universe Medians

2Q
2018

One-
Year

Three-
Years

Five-
Years

Ten-
Years

Canadian Master Trust Total Fund

2.16

7.59

7.16

9.62

7.14


Canadian Equity

5.48

10.59

7.91

10.33

5.33


U.S. Equity

5.24

14.49

12.89

18.26

13.15


International Equity

0.44

9.07

8.40

12.34

6.82


Non-Canadian Equity

2.31

11.30

10.71

15.25

9.66


Fixed Income

0.74

1.51

3.08

4.88

5.65


Real Estate                             

2.38

8.96

7.20

6.72


Canadian Foundations & Endowments

2.61

7.72

7.32

9.50

7.50

Canadian Universities

2.05

8.06

7.35

9.49

7.05

*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 June 30, 2018, 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 June 30, 2018 had US$33.6 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

View original content: http://www.newswire.ca/en/releases/archive/August2018/01/c6111.html

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