Institutional Investors

Mercer tracks US pensions’ flight to quality


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