NEW YORK, June 2, 2015 /PRNewswire/ -- The funded
status of the typical U.S. corporate pension plan increased 1.5
percentage points in May to 91.6 percent, but public plans,
foundations and endowments missed their targets for the month as
flat markets failed to raise the value of their assets, according
to the BNY Mellon Investment Strategy and Solutions Group
(ISSG).
The corporate plans benefited from lower liabilities, as
discount rates rose for the fourth straight month, according to the
BNY Mellon Institutional Scorecard.
For the typical U.S. corporate plan, assets in May fell 0.2
percent; while liabilities declined 1.9 percent as the Aa corporate
discount rate rose 15 basis points to 4.20 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 at its highest level since it was 92.0
percent in June 2014, and it is 4.3
percentage points higher than at the beginning of the year.
"The rising rates have been the biggest driver in funded status
in 2015," said Andrew D. Wozniak,
head of fiduciary solutions, ISSG. "While asset returns have
only been approximately three percent this year, the funded status
has risen more than four percentage points because liabilities have
fallen."
Public defined benefit plans in May missed their return target
by 0.7 percent as assets declined 0.1 percent, according to the
monthly report. Year over year, public plans are 3.5 percent
below their annual return target, ISSG said.
For endowments and foundations, the real return in May was -0.6
percent as assets were flat, ISSG said. Year over year,
endowments and foundations are behind their inflation plus spending
target by 2.2 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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service, distribute or restructure investments. BNY Mellon is the
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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