Traditional Asset Classes Drive Canadian Plans to Post Strong Fourth Quarter 2021 Returns, Says BNY Mellon Canadian Master Trust Universe

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Canadian plans end 2021 with seventh straight quarter of positive returns

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

BNY Mellon Canadian Master Trust Universe results are based on $309.1 billion value of investment assets in Canadian investment plans, with the average plan size being $3.7 billion. The universe is designed to provide peer comparisons by plan type and size, and includes 84 Canadian corporate, public and university pension plans. Additional insight into plan results is provided by BNY Mellon’s Asset Strategy View and Universe product extension, Asset Allocation Trust Universes.

“Despite the continued challenges of the Omicron variant, global inflationary concerns and 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 at BNY Mellon Global Risk Solutions. “The BNY Mellon Canadian Master Trust Universe’s median return was positive, led by Canadian and US equities for this quarter and for all of 2021.”

Among traditional asset classes, the median of the US equity universe posted the best performance, with a quarterly median return of +7.35%. International equity returns were the weakest, posting a quarterly return of 1.95%.

As far as non-traditional asset classes are concerned, Real Estate achieved the best performance, with a median quarterly return of +4.31%. Private equity ended the quarter with a median return of +3.25%, while hedge funds had a 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 on $1 billion underperformed the median return of the Canadian Master Trust universe in the fourth quarter of 2021.
  • Canadian foundations and endowments posted a median performance of 4.50% for the fourth quarter.
  • All major equity segments posted healthy and positive returns.
    • Canadian equities posted a median return of +6.20% in the fourth quarter, ahead of the S&P/TSX Composite Index return of +3.06%.
    • US equities posted a quarterly median return of +7.35%, outperforming the return of the S&P 500 Index by +2.88%.
    • Non-Canadian equities posted a positive median return of +5.39% in the fourth quarter, outperforming the MSCI World Index return of +2.71%.
    • International equities posted a median quarterly return of +1.95%, trailing the MSCI EAFE Index return of 3.52%.
  • The median return for fixed income securities was 2.33% in the fourth quarter of 2021. Fixed income securities outperformed the FTSE Canada Universe Bond Index in the fourth quarter, which returned 1.67 %.
  • Other information from the universes of asset allocation trust BNY Mellon indicates that emerging markets equities posted a negative median performance for the quarter of -0.77%, behind the performance of the MSCI Emerging Index. Markets of 0.36%.
  • The BNY Mellon Asset Allocation Trust universes also provide information on alternative asset classes. Private equity had a positive quarterly median return of +3.25% for the fourth quarter and real estate had a quarterly median return of +4.31%. Hedge funds returned 0.03%.

BNY Mellon Canadian Master Trust Universal Plan Median Returns*

Universe medians

4Q
2021

One-
Year

Three-
Year

Five-
Year

Ten-
Year

Global Canadian Global Trust Fund

4.11

9.48

11:40 a.m.

8.45

9.39

Canadian stocks

6.20

23.67

3:60 p.m.

9.70

10.34

US stocks

7.35

22.79

20.56

15.24

6:46 p.m.

International Equities

1.95

7.44

12.31

9.91

11.71

Non-Canadian stocks

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 and endowments

4.50

13.61

12.97

9.62

9.77

*All returns are shown gross of fee results, calculated in Canadian dollars.


Information containing 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 upon and does not replace the skill, judgment and experience of the user, its management, its employees, its advisors and/or its customers when making decisions about investment and other business decisions. None of the information constitutes an offer to sell (or the solicitation of an offer to buy) any security, financial product or other investment vehicle or trading strategy. Certain products or services are only available through BNY Mellon.

About CIBC Mellon

CIBC Mellon is committed to helping Canadian institutional investors and international institutional investors in Canada manage their financial assets throughout the investment life cycle. Founded in 1996, CIBC Mellon is equally owned by The Bank of New York Mellon (BNY Mellon) and the Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon provides insightful investment services to investment funds, pension plans, insurance companies, banks, foundations, endowments, corporations and global financial institutions whose clients invest in Canada. Like a December 31, 2021CIBC Mellon had more than CA$2.6 trillions in assets under administration. CIBC Mellon is part of the BNY Mellon network which, at the 31st of December, 2021 had US$46.7 trillion in assets under custody and/or administration. CIBC Mellon is an authorized user of the trademark CIBC and certain trademarks of BNY Mellon, is the trademark of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term for either or both companies.

For more information, including the latest knowledge leadership from CIBC Mellon on issues relevant to institutional investors active in Canadavisit www.cibcmellon.com.

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

SOURCECIBC Mellon

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

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