NEW YORK, Aug. 4, 2015 /PRNewswire/ -- The funded
status of the typical U.S. corporate pension plan declined, falling
1.1 percentage points in August to 86.7 percent. Liabilities
increased more rapidly than assets during the month, according to
the BNY Mellon Investment Strategy and Solutions Group
(ISSG).
The typical U.S. corporate plan suffered from increased
liabilities of 2.3 percent. This was driven primarily by Aa
Corporate discount rates which fell 14 basis points over the month
to 4.36 percent.
"This was the first monthly drop in Aa corporate discount rates
since January; however rates remain well above beginning of year
levels. The typical corporate plan's funded status remains positive
despite the drop in discount rates, posting a 4.4 percent
improvement for the first seven months of the year," said
Andrew D. Wozniak, head of fiduciary
solutions, ISSG.
Plan liabilities are calculated using the yields of long-term
investment grade bonds. Higher yields on these bonds result
in lower liabilities.
Public defined benefit plans met their return targets in July,
however this is just the second month in 2015 where the Typical
Defined Benefit Plan met or exceeded its return, ISSG
said.
Public plans have still fallen short on year to date return
targets of 4.3 percent and remain below their annual return target,
ISSG said.
The July BNY Mellon Institutional Scorecard also noted that for
endowments and a foundations, the real return was down -0.6
percent.
"Endowments and Foundations struggled to meet their target as
assets declined, primarily due to the decline in commodities and
poor Emerging Equity performance," said Wozniak.
Notes to Editors:
The BNY Mellon Investment Strategy and Solutions Group is a
division of The Bank of New York Mellon.
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
June 30, 2015, BNY Mellon had
$28.6 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 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 June 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:
|
Melissa
Cassar
|
|
+1 212 635
6038
|
|
melissa.cassar@bnymellon.com
|
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SOURCE BNY Mellon