The aggregate funded ratio for US corporate pension plans increased by 1.0 percentage points to end the month of November at 86.8 per cent, according to Wilshire Consulting.
The monthly change in funding resulted from a 0.9 percent increase in asset values and a 0.3 per cent decrease in liability values. Despite the past three-monthly increases in funded ratio, the aggregate funded ratio is estimated to be down 0.7 and 6.1 percentage points year-to-date and over the trailing 12 months, respectively.
“November’s increase in funded ratio was driven by the increase in asset value resulting from positive public equity returns,” says Ned McGuire (pictured), Managing Director and a member of the Investment Management & Research Group of Wilshire Consulting. “November’s 1.0 percentage point increase in funded ratio is the third consecutive and seventh monthly increase this year.”
