Hedge funds had a rough June, but corporate pensions came out of the second quarter on top.
The average funded status of a U.S. corporate pension rose in the second quarter as liabilities fell, reports Pensions & Investments. Legal & General Investment Management America found that the funded ratio was up 6% to 87.7% funded in Q2. Liabilities were down 7.1% during the same time. Equity returns were relatively low, with the S&P 500 bringing in just 0.28%, and global equities 0.5%. The LGIMA assessment is based off a “typical” 60-40, equity-fixed income, portfolio.
In a separate study, UBS Global Asset Management reported that DB plan funding status was up 1% to 87% in the second quarter, with mortality assumptions factored in. Without the updated mortality assumptions, the funded ratio would have been about 92%, UBS reports.
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