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.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.
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