Funded Status of U.S. Corporate Pensions Rises to 92 Percent, According to BNY Mellon ISSG - KMPH FOX 26 | Central San Joaquin Valley News Source

Funded Status of U.S. Corporate Pensions Rises to 92 Percent, According to BNY Mellon ISSG

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE BNY Mellon

Corporate Plans, Public Plans, Foundations and Endowments Exceed Targets

NEW YORK, July 2, 2014 /PRNewswire/ -- The funded status of the typical U.S. corporate pension plan increased 1.4 percentage points in June 2014 to 92.0 percent, driven by rising asset values, according to the BNY Mellon Investment Strategy and Solutions Group (ISSG).  

"Corporate plans also benefited from a slight rise in interest rates, which reduced liabilities," said Andrew D. Wozniak, head of fiduciary solutions, ISSG. "June ended a string of three consecutive months of falling rates, which had been driving liabilities higher."

The BNY Mellon Institutional Scorecard for June notes assets at the typical corporate plan rose 1.4 percent and liabilities decreased 0.2 percent during the month. 

Year to date, the funded status of corporate plans is down 3.2 percentage points, according to the scorecard.

Public defined benefit plans, endowments and foundations also benefited from strong asset returns and exceeded their return targets, ISSG said.

"Equities have continued rallying since April as economic data appears to indicate strengthening global growth," said Wozniak. "If the funded status continues to rise, we expect more plans to implement strategies that better insulate them from future market volatility."

The decrease in liabilities for corporate plans in June was due to a 4-basis-point increase in the Aa corporate discount rate to 4.32 percent, the report said.   Plan liabilities are calculated using the yields of long-term investment grade bonds. Higher yields on these bonds result in lower liabilities. 

On the public side, defined benefit plans in June exceeded their target by 1.0 percent as assets led by small cap equities and private equity rose.  Year over year, public plans exceeded their target by 9.0 percent, ISSG said.

For endowments and foundations, the real return in June was 1.0 percent, exceeding the target for spending plus inflation, ISSG said.  This outperformance was driven largely by their exposure to private equity, which accounts for approximately 15 percent of the typical portfolios for endowments and foundations. Year over year, foundations and endowments are ahead of their target by 8.2 percent.

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 $1.6 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, 2014, BNY Mellon had $27.9 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, or follow us on Twitter @BNYMellon.

All information source BNY Mellon as of March 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 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

                                                                   

                     

©2012 PR Newswire. All Rights Reserved.

  • Local NewsLocal NewsMore>>

  • Church in Northwest Fresno Vandalized

    Church in Northwest Fresno Vandalized

    Police are looking for the vandal that left the walls and front door of a northwest Fresno church spray painted. An administrator at St. Anthony of Padua church discovered the graffiti Saturday morning when arriving to work.One of the churches front doors and the walls around it had been spray painted with bizarre images and words.If you have any information that could help police identify the person who did this, call the Fresno Police Department at 559-621-7000.More >>
    Police are looking for the vandal that left the walls and front door of a northwest Fresno church spray painted. An administrator at St. Anthony of Padua church discovered the graffiti Saturday morning when arriving to work.One of the churches front doors and the walls around it had been spray painted with bizarre images and words.If you have any information that could help police identify the person who did this, call the Fresno Police Department at 559-621-7000.More >>
  • Valley Family Gives Back On Daughter's First Birthday

    Valley Family Gives Back On Daughter's First Birthday

    Brooklynn Harold has seen her share of doctors in the first year of her life. She was born with clubfoot and is now on the road to recovery. To celebrate her first birthday her parents decided not to shower her with gifts but instead to seek donations to help other kids with clubfoot.Her mother Jill Harold says her daughter has made great progress thanks to the orthopedic unit at Children's Hospital Central California and the staff at Valley Orthopedic. They asked family and friends to hold o...More >>
    Brooklynn Harold has seen her share of doctors in the first year of her life. She was born with clubfoot and is now on the road to recovery. To celebrate her first birthday her parents decided not to shower her with gifts but instead to seek donations to help other kids with clubfoot.Her mother Jill Harold says her daughter has made great progress thanks to the orthopedic unit at Children's Hospital Central California and the staff at Valley Orthopedic. They asked family and friends to hold o...More >>
  • Two People Found Dead In Their Clovis Home

    Two People Found Dead In Their Clovis Home

    Clovis Police say two people were found dead inside their home near Fowler Avenue and Tollhouse Lane. Detectives say both people were shot and killed Friday afternoon.More >>
    Clovis Police say two people were found dead inside their home near Fowler Avenue and Tollhouse Lane. Detectives say both people were shot and killed Friday afternoon.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KMPH. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.