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.
JULY 31, 2010:PPA liabilities gained another 2.23% in the month of July to finish with a YTD return of 12.91%. However, assets were able to outperform liabilities for the month, returning 4.98%. While the start of the 3rd Quarter shows a slight improvement of asset performance versus liabilities, 2010 continues to be a difficult year for domestic defined benefit pension plans.The average U.S. pension portfolio in America, estimated at 65% equities and 35% fixed income has returned 1.84% YTD through July 31, 2010.more >
JUNE 30, 2010:With credit continuing to rally, PPA liabilities gained another 4.01% in the month of June to finish with a YTD return of 10.45%. The 2nd Quarter proved to be painful for both assets declining and liabilities rallying. The Quarter closed with assets down –6.60%, and the difference between assets and liabilities for the quarter being –15.39%. The average U.S. pension portfolio in America, estimated at 65% equities and 35% fixed income, has returned -2.98% YTD.more >
MAY 31, 2010:The 2010 story shows no end as PPA liability returns continue to rally, gaining another 1.30% in the month of May to finish with a YTD return of 6.44%. May proved to be a disastrous month in the equity markets, as fear and dislocation have returned. The European debt crisis, coupled with the BP oil leak, have brought with it volatility reminiscent of late 2008 and early 2009. The S&P gave back 856 basis points of YTD returns in a month, and the asset allocation model declined a further...more >
