Despite a September sell-off, public equity markets moved higher for the quarter. With Treasury yields staying low and corporate bond spreads tightening, most fixed income markets also delivered positive returns. We estimate that in aggregate, pension assets were (1.4)% and 3.6% for the month and quarter. In our third edition of the Corporate Pension Quarterly: Treading Water, we provide observations on market volatility and pension funded status, and current themes that are top of mind for clients.
Mike Moran, Senior Pension Strategist, GSAM
“Diversification can be helpful in any environment, and may be even more important today given COVID-related volatility and the possibility for increased market disruptions around the US Presidential election.”
Matt Maciaszek, Fixed Income Portfolio Manager, GSAM
“Utilizing interest rate derivatives such as US Treasury Futures can help plans optimize their fixed income allocations so that they can maintain or even increase the amount of capital dedicated to growth asset investments.”