NEW YORK, April 6, 2015 /PRNewswire/ -- The funded status
of the typical U.S. corporate pension plan declined 0.4 percentage
points in March to 87.2 percent in March, as most equity categories
fell, according to the BNY Mellon Investment Strategy and Solutions
Group (ISSG).
Public plans, endowments and foundations missed their targets
for the month, as most asset classes lost value, according to the
BNY Mellon Institutional Scorecard.
For the typical U.S. corporate plan, assets in March decreased
0.5 percent; while liabilities fell 0.1 percent as the Aa corporate
discount rate rose two basis points to 3.86 percent.
Plan liabilities are calculated using the yields of long-term
investment grade bonds. Higher yields on these bonds result
in lower liabilities.
The funded status is 4.9 percentage points lower than at this
time last year and 0.1 percentage points lower than at the
beginning of the year.
"March was a lackluster month for most markets, with little
fluctuation in asset values," said Andrew
D. Wozniak, head of fiduciary solutions, ISSG.
"However, volatility increased as investors anticipate a shift in
U.S. monetary policy. Higher rates would reduce liabilities,
although investors would have to decide where to allocate assets so
they are best positioned in the new interest rate environment."
Public defined benefit plans in March missed their return target
by 1.3 percent as assets had a negative return of 0.7 percent,
according to the monthly report. Year over year, public plans
remain below their return target by 2.7 percent, ISSG said.
For endowments and foundations, the real return in March was
-1.1 percent as assets returned -0.9 percent, ISSG
said. Year over year, endowments and foundations are
behind their inflation plus spending target by 2.0 percent, ISSG
said.
Notes to Editors:
The BNY Mellon Investment Strategy and Solutions Group is a
division of The Bank of New York Mellon.
BNY Mellon Investment Management is one of the world's leading
investment management organizations and one of the top U.S. wealth
managers, with $1.7 trillion in
assets under management. It encompasses BNY Mellon's affiliated
investment management firms, wealth management services and global
distribution companies. More information can be found at
www.bnymellon.com.
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
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administration, and $1.7 trillion in
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All information source BNY Mellon as of December 31, 2014. This press release is
qualified for issuance in the US only and is for information
purposes only. It does not constitute an offer or solicitation of
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Contact:
Mike Dunn
+1 212 922 7859
mike.g.dunn@bnymellon.com
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SOURCE BNY Mellon