According to BNY Mellon Asset Management, the funded status of a typical U.S. corporate pension plan fell by 5.7 percentage points in June for the first time in four months.
The company says falling yields on long Aa corporate bonds which drove liabilities higher have contributed to this result.
Its analysis suggests assets for an average moderate risk portfolio increased 0.3 percent, while liabilities rose 7.6 percent during the month. For the first six months of the year, the funding ratio for the typical plan is up 5.2 percentage points, as represented by the BNY Mellon Pension Liability Index.
"Rising stock markets improved the funded status of pension plans in March, April and May, but the rally slowed in June and was unable to keep up with the rise in liabilities," says Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management.
The Bank of New York Mellon Corporation is a financial services company operating in 34 countries. It has $20.2 trillion in assets under custody and administration, $928 billion in assets under management, services more than $11 trillion in outstanding debt and processes global payments averaging $1.8 trillion per day.