Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Investing May 5, 2008
April Equity Markets Boost Plan Funding
May 5, 2008 (PLANSPONSOR.com) - An April equity
market rally led to a 1.5% improvement in the funded status
of the typical U.S. pension plan, according to BNY Mellon
Asset Management.
Reported by Fred Schneyer
A news release said assets of the typical moderate risk pension plan increased 3%, more than offsetting the 1.5% rise in liabilities. For the year to date, the funded status of the typical U.S. pension plan has declined 2.3%.
“U.S. stocks finally rallied after five months of negative performance as Fed easing and liquidity facilities calmed the markets,” said Peter Austin, executive director of BNY Mellon Pension Services, in the news release. “However, corporate yield spreads narrowed impressively against Treasuries, with long corporate bond yields 10 basis points lower than last month. Lower yields on longer-term corporate bonds resulted in higher liabilities for the typical pension plan.”
« Institutional Investors Increasing Hedge Fund and PE Allocations