US - The funding status of US corporate pension funds improved nearly three percentage points in July on the back of strong global equity performance, BNY Mellon Asset Management says.
The funding status of the plans was 76.9% at the end of the month. In July, US stocks rose 6.9%, while international stocks were up 9.5%. This translated to a boost in total assets of 4.8%, BNY says.
However, a decline in corporate bond spreads shaved 0.9% from the funding levels. In July, the AA corporate discount rate fell to 5.29% from 5.34% in June.
"The July rebound in equities provided much-needed relief for pension plans that had suffered through three consecutive months of falling assets and declining funded status," said Peter Austin, executive director of BNY Mellon Pension Services.
"Despite the strong July performance of the equities markets, the funded status for the typical plan is still 6.6 percentage points lower than it was at the beginning of 2010."
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