NEW YORK, May 4, 2015 /PRNewswire/ -- The funded
status of the typical U.S. corporate pension plan increased 2.9
percentage points in April to 90.1 percent, as rising interest
rates sent liabilities lower, according to the BNY Mellon
Investment Strategy and Solutions Group (ISSG).
Public plans, endowments and foundations exceeded their targets
for the month, as asset values rose, according to the BNY Mellon
Institutional Scorecard.
For the typical U.S. corporate plan, assets in April increased
0.7 percent; while liabilities fell 2.6 percent as the Aa corporate
discount rate rose 20 basis points to 4.06 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 0.5 percentage points lower than at this
time last year and 2.8 percentage points higher than at the
beginning of the year.
"Corporate plans are seeing the benefits of a slight rise in
interest rates, which have increased for three consecutive months
and are pushing down liabilities," said Andrew D. Wozniak, head of fiduciary solutions,
ISSG. "Emerging markets equity and private equity both had
strong months, benefiting public plans, endowments and
foundations."
Public defined benefit plans in April exceeded their return
target by 0.9 percent as assets returned 1.5 percent, according to
the monthly report. Year over year, public plans remain below
their return target by 1.8 percent, ISSG said.
For endowments and foundations, the real return in April was 1.2
percent as assets returned 1.5 percent, ISSG said. Year
over year, endowments and foundations are behind their inflation
plus spending target by 1.1 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
35 countries and more than 100 markets. As of March 31, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or
administration, and $1.7 trillion in
assets under management. BNY Mellon can act as a single point of
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BK). Additional information is available on www.bnymellon.com, or
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All information source BNY Mellon as of March 31, 2015. 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 securities or
investment services or an endorsement thereof in any jurisdiction
or in any circumstance in which such offer or solicitation is
unlawful or not authorized. This press release is issued by BNY
Mellon Investment Management to members of the financial press and
media and the information contained herein should not be construed
as investment advice. Past performance is not a guide to
future performance. A BNY Mellon Company.
Contact: Mike
Dunn
+1 212 922
7859
mike.g.dunn@bnymellon.com
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SOURCE BNY Mellon