Wilshire estimates just over a one and a half percentage point increase in aggregate funded ratio for US corporate pension plans in January
The aggregate funded ratio for US corporate pension plans increased by an estimated 1.7 percentage points month-over-month in January to end the month at 88.5 per cent, according to Wilshire.
Through its suite of Outsourced Chief Investment Officer (OCIO) and advisory services, Wilshire assists in ensuring secure and safe 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 3.5 percentage point decrease in liability values partially offset by a 1.6 percentage point decrease in asset values. The aggregate funded ratio is estimated to have increased by 3.6 percentage points over the trailing twelve months.
“January’s increase in funded ratio was primarily driven by the decrease in liability values as corporate bond yields used to value corporate pension liabilities increased by over 20 basis points,” says Ned McGuire, Managing Director, Wilshire. “January’s asset value decrease snapped two consecutive monthly increases and was driven by negative returns for fixed income.”