US pension briefing – November 2021

Article December 6, 2021 US pension briefing – November 2021 Written by River and Mercantile Share Key takeaways Discount rates were flat, but the Treasury yield curve changes and credit spread changes paint an interesting picture of what is happening with rates. A new COVID variant wreaked havoc on most equity classes domestically and internationally.…

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Monthly macro update – November 2021

Article November 30, 2021 Monthly macro update – November 2021 Written by River and Mercantile Share Snapshot of views US equity markets bounced back from a weak September to reach all-time highs despite ongoing concerns about inflation. Our primary concern is to what extent inflation causes policymakers to withdraw monetary support prematurely, which could negatively…

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Monthly macro update – October 2021

Article November 8, 2021 Monthly macro update – October 2021 Written by River and Mercantile Share Snapshot of views While equities have been our highest conviction allocation this year, we view credit markets as a more useful indicator of economic health. As a result, we will be watching our credit conditions indicators closely to evaluate…

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US pension briefing – October 2021

Article November 8, 2021 US pension briefing – October 2021 Written by River and Mercantile Share Key takeaways Pension discount rates were down from the previous month-end. Asset returns for both US and international equities were positive (7% and 2%, respectively). Fixed income assets stayed stable during the month. Funded status improved across pension plans…

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Monthly macro update – September 2021

Article October 8, 2021 Monthly macro update – September 2021 Written by River and Mercantile Share Snapshot of views For the past year, we have held a preference for equities over credit, but when may a more balanced allocation become suitable? While we think monetary and fiscal economic support will slow, we expect both to…

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US pension briefing – September 2021

Article October 6, 2021 US pension briefing – September 2021 Written by River and Mercantile Share Key takeaways Discount rates were up for the second month in a row and finished the quarter roughly where they started. Asset returns were generally down across the board. Funded status for most pension plans likely declined during the…

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US pension briefing – August 2021

Article September 7, 2021 US pension briefing – August 2021 Written by River and Mercantile Share Key takeaways Pension discount rates increased by 0.05% during August, translating to pension liability decreases of approximately 0.5%-0.7% for a typical pension plan. Discount rates are still down about ~0.50% from the March 2021 highs. Asset market performance was…

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Monthly macro update – August 2021

Article August 23, 2021 Monthly macro update – August 2021 Written by River and Mercantile Share Snapshot of views Throughout the year, our base case has been that pandemic-driven inflation will be transitory. Despite continued high short-term inflation readings, long-term inflation as priced by the markets continues to moderate to what we believe to be…

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