Institutional Investors

Mercer tracks US pensions’ flight to quality

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According to the latest figures from consulting firm Mercer, the market volatility in the first six trading days of August saw the funded status deteriorate by nearly $200 billion among S&P 1500 company pension plans.

The aggregate funded status among these plans decreased by $191 billion to a funding deficit of $496 billion representing an aggregate funded ratio of 73% when the market closed on 8 August. This deficit corresponds to a 10% reduction in just six days from Mercer’s calculation of an 83% funded ratio as of July 31, and a 15% reduction from the peak funded