Articles | February 2, 2023
During the fourth quarter (Q4) of 2022, the funded status of the model pension plan examined in each issue of Prism rose by 2 percentage points, to 106 percent, as illustrated in the graph below.
This increase in funded status is primarily attributable to a 7 percent increase in assets, partially offset by a 4 percent increase in liabilities.
Source: Prism Review of Fourth Quarter 2022
Equity and fixed income returns were positive during Q4, closing out a historic calendar year in investment markets that saw both domestic equities and domestic bonds post negative returns simultaneously for the first time in at least five decades.
Developed international and emerging market equities both performed well in Q4 and outperformed U.S. equities as China relaxed its zero-COVID-19 policy and began to reopen. A weakening U.S. dollar during the quarter provided a further tailwind for international markets.
Fixed income returns were positive in Q4 both domestically and internationally following three consecutive negative quarters.
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.
Don't miss out. Join 16,000 others who already get the latest insights from Segal.