BNY Mellon Asset Management reports that assets of a moderate risk pension portfolio increased 2.6% in September, far outpacing the 0.2% rise in a typical plan’s liabilities.
“Lower volatility and an easing Federal Reserve brought relief to the capital markets in September,” says Peter Austin, executive director of BNY Mellon Pension Services. “Long-maturity Treasury bond yields rose slightly, but high-grade corporate bonds tightened 10 basis points.”
Year-to-date, the typical U.S. plan has improved its funded status by 4.6%, with moderate risk assets up 7.3% and typical pension liabilities 2.7% higher. Lower interest rates increase liabilities and the value of bonds.
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