The funded status of corporate pension plans was little changed in May despite tumultuous equity markets and persistent inflation fueled by supply-chain issues and fallout from the war in Ukraine. Equities were relatively flat for the month in spite of the spike volatility. Total-return allocated plans outpaced LDI plans in May, as their longer-duration liabilities declined. NEPC’s hypothetical pension plans witnessed a funded status gain of 1.5% for the total-return plan and a modest 0.3% for the LDI-focused plan.
The funded status of the total-return plan increased by 1.5% as liabilities declined and asset returns held steady.
The funded status of the LDI-focused plan rose by 0.3%, with both asset and liability values relatively flat for the month. The plan is 80% hedged as of May 31.
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