US corporate pensions see first monthly increase in funded ratio of 2020, says Wilshire Consulting

The aggregate funded ratio for US corporate pension plans increased by 2.2 percentage points in April to end the month at 83.2 per cent, according to Wilshire Consulting.

Wilshire Consulting is the institutional investment advisory and outsourced-CIO unit of Wilshire Associates Incorporated, and assists in ensuring secure retirements for millions of Americans, including those participating in some of the nation’s largest corporate and public retirement plans.

The monthly change in funding resulted from a 6.3 per cent increase in asset values partially offset by a 3.6 per cent increase in liability values. The aggregate funded ratio is estimated to have decreased by 5.4 and 7.6 percentage points year-to-date and over the trailing 12 months, respectively.  

“April’s increase in funded ratio was primarily driven by the third best monthly return ever and the best monthly return since January 1975 for the Wilshire 5000,” stated Ned McGuire, managing director and a member of the investment management and research group of Wilshire Consulting. “April marks the first monthly increase in funded ratio since the beginning of the year”.

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