NEW YORK, Nov. 11, 2015 /PRNewswire/ -- According to the
BNY Mellon Institutional Scorecard -- available for download,
here -- the funded status of the typical U.S. corporate
pension plan rose in October, increasing by 2.9 percentage points,
to 84.7 percent. Corporate pensions are now up 2.4 percent
year-to-date, after briefly dipping into negative territory in
September. Public plans and foundations & endowments both
exceeded the Scorecard's monthly return targets by 3.9, and 3.8
percent, respectively.
For the typical U.S. corporate plan, Aa corporate discount rates
fell by 3 basis points in October, to 4.35 percent, as investment
grade spreads tightened. The decline in rates led to an increase in
liabilities of 0.8 percent, while assets appreciated 4.2
percent.
"For the first time since mid-summer, investors finally saw
relief from market headwinds, as equities of all flavors had a
strong month," said Andrew D.
Wozniak, head of BNY Mellon Fiduciary Solutions. "Corporate
defined benefit plan sponsors felt the combined effects of both
appreciating asset values and relatively stable liabilities, which
led to funded status increases for the typical plan."
Public defined benefits in October exceeded their return target
by 3.9 percent, as assets increased by 4.5 percentage points,
according to the October BNY Mellon Institutional Scorecard. Still,
public plans are short on their year-to-date return target by 5.6
percent, and one year return target by 6.9 percent.
The October BNY Mellon Institutional Scorecard also noted that
endowments and foundations surpassed their monthly spending plus
inflation target by 3.8 percent. Despite the strong October, asset
returns for the typical endowment and foundation are still down 53
basis points over the past year, which is behind the spending plus
inflation target by 5.1 percent.
"Investors are starting to come around on risk asset exposure,
which definitely helped the equity markets this month. High yield
credit and emerging market debt also saw gains -- up 2.7 and 2.6
percent, respectively. Inflation has been virtually non-existent
year-to-date, and is negative over the past 12 months," said
Wozniak. "The rise in asset values with controlled inflation
particularly benefited typical public defined benefit plans,
endowments and foundations. We hope to see this trend continue in
the months ahead."
Notes to Editors:
BNY Mellon Fiduciary Solutions is a division of The Bank of New
York Mellon. To view past BNY Mellon Institutional Scorecard data,
click here.
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 Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or
administration, and $1.6 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.
All information source BNY Mellon as of September 30, 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:
Scott Pepper
+1 212 635 1743
scott.pepper@bnymellon.com
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SOURCE BNY Mellon