Five key themes
2022 was one of the worst years for asset returns in modern history with equities down around 20% and global bonds down roughly 14%. Despite this, PBO-funded ratios for U.S. corporate pension plans ended the year up +1.1% as of December 31, 2022, according to BlackRock’s U.S. Pension Funding Update.
Therefore, many plans remain in a very healthy financial position – so much so that in this year’s corporate pension themes publication, we are encouraging plan sponsors to use your well-funded plan to your advantage.
However, as the theme of our paper last year stated, fully funded does not mean fully de-risked. In the fifth annual publication of our U.S. Corporate Pension Themes paper, we look at five investment themes that we believe are top-of-mind for sponsors in 2023. Watch the video below to hear from Martin Jaugietis, Co-Head of Americas Pensions in BlackRock's Multi-Asset Strategies & Solutions group, about these themes:
Having a well-funded defined-benefit plan may prove in 2023 to benefit U.S. corporations: helping them retain employees while also preserving capital for other uses.
