Pension Indicator Updated for June 30, 2021

Take a Picture, It'll Last Longer

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

We've reached the halfway point in the year.  June 30 is the second most important day for actuaries in the accounting world because of all the fiscal year-ends that coincide. It also means next month the charts below will rotate and the starting point will move from June 30 to December 31. And while the chart next month will still look impressive (barring a catastrophe), the market movements of the past twelve months are giving us the highest readings in the Pension Indicator’s history for June 30. While we certainly have experienced some good returns in broad equities at times over the past decade, the changing bond yields actually worked in plan sponsors' favor for once. 

And as I say that, funny that this is the third month in a row where the bond yields used to develop our yield curve declined. While there is considerable debate about inflation as the world opens up again, the consensus from watching the markets is there is little belief this will be long-term. And as the level-to-increasing readings on the charts below show, overall investment performance has outpaced the modest retreat in bond yields during that time.

Part of me wants to frame this month’s results on the wall, though. This isn’t to say that good things are coming to an end. Rather, this is more of a “stop and smell the roses” moment where you want to appreciate how far things have come in such a short time frame.

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.

Year to Date Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
Frozen (for several years) 11.6% 9.0% 5.8% 2.0%
 Recently Frozen 12.8% 10.2% 7.0% 3.1%
 Ongoing Traditional 14.1% 11.4% 8.2% 4.3%
 Cash Balance 12.0% 9.4% 6.2% 2.3%
Month-over-Month Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) -1.3% -0.9% -0.3% 0.6%
 Recently Frozen -2.5% -2.2% -1.5% -0.7%
 Ongoing Traditional -3.8% -3.4% -2.8% -1.9%
 Cash Balance -1.5% -1.2% -0.5% 0.4%
12-Month Change Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) 25.3% 19.5% 14.0% 6.6%
 Recently Frozen 25.3% 19.6% 14.0% 6.7%
 Ongoing Traditional
25.5% 19.8% 14.2% 6.8%
 Cash Balance 25.6% 19.9% 14.3% 6.9%


Frozen Plan 7 31

Recently Frozen Plan 7 31

Ongoing Plan 7 31

Cash Balance 7 31

Disclosure