Pension Indicator Updated for August 31, 2020

The All-Positive Commentary

By: Matthew Klein, Principal, Findley

Note: this commentary is free of the words “unprecedented” and “new normal”. 

We’ve all seen the jokes and memes about the last six months feeling like six years.  I feel that way too, and then on the other hand we are in September, already!  Some good has been had though, and if we can narrow our focus to pension plan funding, August was by far the best month of the year.

US Corporate Bond Yields did their own bounce back, as Moody’s Corporate Aaa bond rating ended one basis point higher at the end of August than it was at the end of May.1   While not great news, any relief from the obscenely high liabilities being generated by record low bond yields is good news.

Despite the high unemployment figures, NASDAQ continues to march along to new heights.  The S&P 500 is trading near its all-time high.  Given some of the closing prices we’ve seen in the last six months, that is almost surreal.

Dr. Fauci is still optimistic that a vaccine could be available in early 2021.  Schools are starting up again, and we are heading into the most beautiful season of the year.  Better days are ahead.

From all of us at Findley 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.

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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) -5.5% -3.6% -1.7% -0.4%
 Recently Frozen -7.2% -5.2% -3.4% -2.1%
 Ongoing Traditional -8.7% -6.8% -5.0% -3.7%
 Cash Balance -6.1% -4.1% -2.2% -0.9%
Month-over-Month Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) 6.8% 5.6% 3.6% 0.9%
 Recently Frozen 8.8% 7.5% 5.6% 2.7%
 Ongoing Traditional 10.8% 9.5% 7.5% 4.6%
 Cash Balance 7.1% 5.9% 3.9% 1.1%
12-Month Change Investment Mix 
Plan TypeGrowthBalancedLDI LiteLDI
 Frozen (for several years) 2.7% 3.0% 3.2% 1.7%
 Recently Frozen 1.8% 2.2% 2.3% 0.9%
 Ongoing Traditional
1.1% 1.5% 1.6% 0.2%
 Cash Balance 2.3% 2.7% 2.8% 1.4%

Frozen Plan 7 31

Recently Frozen Plan 7 31

Ongoing Plan 7 31

Cash Balance 7 31