By: Russ Kamp, Managing Director, Ryan ALM, Inc.

We are pleased to share with you the Ryan ALM, Inc. Pension Monitor for YTD 2023. As you will see, the differences among public and corporate funding results for the first 6 months of 2023 are far smaller than those experienced during 2022’s volatile year, when corporate plans outperformed public plans by an incredible 31.4%.

So far in 2023, corporate plans slightly underperformed public plans as US interest rate declines YTD had a marginal impact on private pensions that operate under FASB accounting standards. In addition, asset allocation differences in exposures to both public bonds and equities further contributed to the 2.4% outperformance of public plans versus corporate plans. Public pension plans have much more modest exposures to fixed income and far greater exposure to public equities vis a vis an average corporate asset allocation structure. With US equities, as measured by the S&P 500 up nearly 17% YTD, public plans have captured more of that return.

As always, please don’t hesitate to reach out to you with any of your questions or visit RyanALM.com to see the plethora of research that we’ve produced for your benefit.