The average U.S. corporate pension plan funding ratio increased over the second quarter, said a report from Barrow, Hanley, Mewhinney & Strauss.
The money manager estimated that the average funding ratio has risen to 81.4% as of June 30 from 77.9% as of March 31, driven by strong equity market performance, which offset pension liability increases.
The estimate was calculated using the most recent 10-K filings from Russell 3000 companies and estimating the funding ratios using the following asset allocation with asset classes’ associated indexes: 29% long-duration fixed income, 28% domestic equities, 15% international equities, 10% core fixed income, 6% hedge funds, 5% private equity, 3% each cash and commodities and the remainder in real estate investment trusts.
By industry, Barrow Hanley said the average funding ratio as of June 30 was highest among banks at 98.3% and lowest among airlines at 70.2%.
