U.S. company-provided pension plans got mixed news from BNY Mellon Investment Strategy and Solutions Group (ISSG) concerning how they fared in January 2015. The good news: assets of a typical plan grew 1%. The bad news: despite the higher assets, funded status fell by 4.9 percentage points from the previous month to 82.4%, reports.
ISSG said the assets grew because of fixed income and emerging market equities’ strong performance.
ISSG attributed the drop in funded status to the slide in the Aa corporate interest rate, which it said fell to 3.56%. And that decline, in turn, resulted in liabilities growing 7%.
This comes on the heels of recent news that the funding levels of the S&P 1500 fell by 9 percentage points in 2014.
ISSG said the assets grew because of fixed income and emerging market equities’ strong performance.
ISSG attributed the drop in funded status to the slide in the Aa corporate interest rate, which it said fell to 3.56%. And that decline, in turn, resulted in liabilities growing 7%.
This comes on the heels of recent news that the funding levels of the S&P 1500 fell by 9 percentage points in 2014.
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