Articles | October 25, 2022
During the third quarter of 2022, the funded status of the model pension plan examined in each issue of Prism rose by 4 percentage points, to 104 percent, as illustrated in the graph below.
This increase in funded status is primarily attributable to a 10 percent decrease in liabilities, partially offset by a 7 percent decrease in assets.
Equity and fixed income returns were again very poor across the board during Q3, as September was the worst month of a very bad year for global investment markets.
U.S. equity markets are now down nearly 25 percent for the year, following another 4 percent loss in Q3. Developed international and emerging market equities also performed very poorly and underperformed U.S. equities as the strong U.S. dollar grew into a headwind for international markets.
Fixed income returns were also poor again this quarter, both domestically and internationally, as interest rates continue their upward trajectory.
Segal Marco Advisors provides consulting advice on asset allocation, investment strategy, manager searches, performance measurement and related issues. The information and opinions herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This article and the data and analysis herein is intended for general education only and not as investment advice. It is not intended for use as a basis for investment decisions, nor should it be construed as advice designed to meet the needs of any particular investor. Please contact Segal Marco Advisors or another qualified investment professional for advice regarding the evaluation of any specific information, opinion, advice, or other content. Of course, on all matters involving legal interpretations and regulatory issues, investors should consult legal counsel.
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