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BNY Mellon Asset Strategy View® Finds Larger Endowments and Foundations that Invest in Alternative Investments Outperform Smaller Institutions Focused on Traditional Equity, Fixed Income

BNY Mellon's proprietary analysis is based on aggregated client data of 85 endowments and foundations representing approximately $192 billion in total assets for the 2017 calendar year

NEW YORK, April 17, 2018 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, today announced new findings from its Asset Strategy View®, a solution that leverages proprietary aggregated client data to generate market intelligence about institutional investor allocation behavior. The report shows that endowments and foundations (E&Fs), small and large, benefited from relatively large exposures to a buoyant U.S. equity market, with a (14.57%) one-year average return for all E&Fs. However larger E&Fs that invested more heavily in alternative investments such hedge funds and private equity asset classes, outperformed smaller institutions that took bigger positions in traditional equity and fixed income asset classes.   

Frances Barney, CFA, head of Global Risk Solutions at BNY Mellon

"Institutions with smaller asset bases tend to have fewer in-house investment professionals, that can sometimes make it more difficult for them to access alternative investment options that are leveraged by larger endowments and foundations," said Frances Barney, CFA, and Head of Global Risk Solutions, BNY Mellon Asset Servicing. "While endowments and foundations of all sizes experienced strong performance in 2017, they seem to have a shared concern about increased market volatility, evolving tax and regulatory reform, and anticipated interest rate increases in 2018. We look forward to discussing these new findings with clients, and to help them better understand peer comparisons in allocation and performance across various asset and sub-asset classes."

BNY Mellon's analysis of aggregate client data from 85 E&Fs in 2017, showed larger institutions outperformed smaller institutions by just over (1%), and in nearly every sub-asset class. Overall, institutions with less than $1 billion in assets experienced strong annual returns of (14.15%) compared to those with more than $1 billion in assets at (15.2%). The findings also revealed divergent approaches to asset allocation. Over the last five years, smaller E&Fs increased exposures to fixed income (+21%) and equities (+8%) while lowering exposures to alternatives (-15%)- particularly private equity and real estate. Larger E&Fs have tended to maintain exposures to alternatives (+5%) and equity (+1%), while significantly reducing their holdings in fixed income (-32%).

To learn more about Asset Strategy View® or BNY Mellon Asset Servicing, please visit our website or submit a request and a member of BNY Mellon's team will contact you.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2017, BNY Mellon had $33.3 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may be used as a generic term to reference the corporation as a whole and/or its various subsidiaries generally. This material and any products and services may be issued or provided under various brand names in various countries by duly authorized and regulated subsidiaries, affiliates, and joint ventures of BNY Mellon.

The information contained in this material is intended for use by wholesale/professional clients or the equivalent only and is not intended for use by retail clients. If distributed in the UK, this material is a financial promotion.

This material, which may be considered advertising, is for general information purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter.  This material does not constitute a recommendation by BNY Mellon of any kind. Use of our products and services is subject to various regulations and regulatory oversight. You should discuss this material with appropriate advisors in the context of your circumstances before acting in any manner on this material or agreeing to use any of the referenced products or services and make your own independent assessment (based on such advice) as to whether the referenced products or services are appropriate or suitable for you. This material may not be comprehensive or up to date and there is no undertaking as to the accuracy, timeliness, completeness or fitness for a particular purpose of information given. BNY Mellon will not be responsible for updating any information contained within this material and opinions and information contained herein are subject to change without notice.  BNY Mellon assumes no direct or consequential liability for any errors in or reliance upon this material.

This material may not be distributed or used for the purpose of providing any referenced products or services or making any offers or solicitations in any jurisdiction or in any circumstances in which such products, services, offers or solicitations are unlawful or not authorized, or where there would be, by virtue of such distribution, new or additional registration requirements.

The terms of any products or services provided by BNY Mellon to a client, including without limitation any administrative, valuation, trade execution or other services shall be solely determined by the definitive agreement relating to such products or services. Any products or services provided by BNY Mellon shall not be deemed to have been provided as fiduciary or adviser except as expressly provided in such definitive agreement.

This material may not be reproduced or disseminated in any form without the prior written permission of BNY Mellon. Trademarks, logos and other intellectual property marks belong to their respective owners.

Additional information about our company is available in our annual report on Form 10-K, proxy statement, quarterly reports on Form 10-Q and our current reports on Form 8-K filed with the SEC and available at www.sec.gov.

© 2018 The Bank of New York Mellon Corporation. All rights reserved.

Contact:

Frank Pinto
BNY Mellon Investment Services
[email protected]
+1 917-309-1065

Peter Gau
BNY Mellon Investment Services
[email protected]
+1 212-815-2754

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SOURCE BNY Mellon

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