October 12, 2015
September 2015 Pension Plan Funding Update
September was another difficult month for Pension plans as liabilities (BofA Mature 12 year duration index) outperformed assets (60% ACWI/40% Barcap Agg) by 3.2%. For the last 3 months, assets have given up over 7% to liabilities.
After the volatile September, liabilities are now positive 1.3% while assets are down -3.8% for the year. The continued struggle to improve funded status remains an issue for many pension plan CFOs, Treasurers and Boards who are trying to manage and control their funded status volatility. Once again, a pension plan with a de-risking glide-path would have been able to benefit from this volatility if they added long duration bond investments to their portfolio following the short lived asset outperformance.
Read more on the current status of pension plan funding here.