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Archive for February 8th, 2009

12/31 Pension Data Still Dripping In

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Updated for new data on Feb 9


As noted this past week, the 2008 annual reports for companies with fiscal years ending December 31 are starting to trickle in. Measured on the basis of 2007 pension assets, so far we now have about 3/4 of 1% of my total universe (S&P Composite 1500 plus some extras, such as major insurance companies), still barely filling the pool enough to get our feet wet, but already starting to resemble early election night returns.

We still don’t have enough to rely on just yet, but for the record, that small subset’s pension plans’ pension assets had an investment yield of -26%, eroding the aggregate funded status to 63% by the close of 2008, a drastic drop from 93% the previous year. For the full 12/31 subset, we expect the funded status as of the close of 2008 to be higher (a few ticks north of 80%) and the drop to have been slightly less severe (with the full subset being less heavily invested in equities and having more foreign plan exposure, both of which should moderate the decline).

(Remember, as I’ve previously disclaimed, posts such as this represent efforts of my favorite pastime. My formal work does not involve any of this, and none of it represents any position or comment that should in any way be attributed to my employer. Likewise, as always, it represents general personal impressions and should not be treated or used as formal professional advice.)

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Written by macheide

8 February 2009 at 5:49 pm

Posted in άctuary