Pension Indicator Updated for August 31, 2021

Keep on Keepin' On

By: Matthew Klein, Principal, Findley, a Division of USI

August was a good month for pension plans, and we generally saw most plans hit their high-water mark by the end of the month. After a couple of lackluster months mainly driven by the liability side of the house, some stability there allowed investment returns to shine through. Overall, investment returns continue to pile up. As my friends at Clearstead noted, the close on September 2nd was the 54th record close for the S&P 500 this year and the S&P has gone over 210 trading days without a 5% drawdown1. This kind of stable climb is rarely seen, and frankly still seems unfathomable to me considering this was happening during a global pandemic.

On the liability side we saw yields tick up a handful of basis points which pushed the overall percentages up around one-half of one percent. This was encouraging because after a sharp increase in aggregated yields (based on FTSE info) during the first quarter of this year, yields had been going in the wrong direction since March 31st1.

From all of us at Findley, a Division of USI, and Clearstead, we hope everyone and their families are safe and healthy. 

As always, thanks for reading, and drop us a comment on how we're doing.

This email address is being protected from spambots. You need JavaScript enabled to view it. or Clearstead  to discuss this information further.

For more information on the development of the Pension Indicator, please see our Disclosure document.

Information provided in this article is general in nature, is provided for informational purposes only, and should not be construed as investment advice. Performance data represents past performance.  Past performance is not indicative of future results.

1Bloomberg

Year to Date Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
Frozen (for several years) 12.6% 9.9% 6.6% 2.6%
 Recently Frozen 13.4% 10.6% 7.3% 3.3%
 Ongoing Traditional 14.2% 11.5% 8.1% 4.1%
 Cash Balance 12.9% 10.2% 6.9% 2.9%
Month-over-Month Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) 2.0% 1.6% 1.1% 0.4%
 Recently Frozen 2.1% 1.8% 1.3% 0.6%
 Ongoing Traditional 2.3% 1.9% 1.4% 0.7%
 Cash Balance 2.0% 1.7% 1.2% 0.5%
12-Month Change Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) 19.2% 14.9% 10.6% 5.2%
 Recently Frozen 18.9% 14.7% 10.4% 4.9%
 Ongoing Traditional
18.8% 14.5% 10.2% 4.8%
 Cash Balance 19.5% 15.2% 10.9% 5.5%


Frozen Plan 7 31

Recently Frozen Plan 7 31

Ongoing Plan 7 31

Cash Balance 7 31

Disclosure

FINDLEY

 

 At Findley, a Division of USI, we deliver expertise, experience, and innovative solutions related to employer-sponsored retirement plans, benefits, and human capital services. We are proud to be part of USI, one of the largest insurance brokerage and consulting firms in the world, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to large risk management clients, middle-market companies, smaller firms and individuals.

 

 

Clearstead Logo

 

Clearstead is a leading institutional and private client advisory firm.  We are relentless in providing superior solutions so clients can exceed their aspirations, and build stronger legacies for their families, their communities, and themselves.  We do so with our authentic, steadfast, and innovative employee and board-member owned firm of nearly 80 professionals who work to tackle complex investment, financial, tax, and governance needs of our institutional and private clients.