On a monthly basis, Ryan Labs tracks the return of pension plan assets versus their liabilities. The Asset/Liability Watch provides a snapshot of the issues facing pension plan sponsors and trustees, while providing a glimpse of the overall solvency of defined benefit pension funds. Liabilities in the Asset/Liability Watch are priced at the PPA curve, as well as the Treasury curve.
Asset Liability Watch December 31, 2011:As 2011 wound down, the markets caught a year-end tailwind and rallied hard. The S&P had a monster quarter, finishing up 11.81%. Equities across the board performed strongly, and the Ryan Labs traditional Asset Allocation Model finished up 7.60%. The 4th Quarter was certainly a strong one for equities. For the 4th Quarter, RL PPA liabilities finished up 5.42%, and in December alone, the return was 6.57%.more >
Asset Liability Watch November 30, 2011:The Holiday Season is a time to give thanks, reflect back on the events of the past year, and look towards the new year with optimism. The second month of the 4th Quarter is providing pension plan sponsors with the opportunity to take a step back, review what has happened this year, and gain a bit of relief from the outperformance of assets versus liabilities.more >
Asset Liability Watch October 31, 2011:The last two months of the Third Quarter consisted of a vicious attack on pension plan funding levels that hadn’t been seen since the fall of 2008. In the third quarter, a pension plan with a traditional asset allocation detailed above saw theirfunding ratios decline by 15.77%. Once again, volatility kicked in on the performance asset side while interest rates declined, impacting the liability side.more >
