Continued rises in global discount rates drove positive WTW Pension Index movements in most regions over the quarter.
Discount rates increased in all countries other than Switzerland. All countries, with the exception of Brazil and the U.K., experienced positive asset returns during the quarter.
About this report
Global Pension Finance Watch, published quarterly, reviews how capital market performance affects defined benefit pension plan financing in major retirement markets worldwide, with a focus on linked asset/liability results. We cover defined benefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K. and the U.S. Specific plan results will vary, often substantially, based on liability characteristics, contribution policy, portfolio composition and management strategy among other factors. The passage of time since quarter end, may also have a significant impact on pension plan financing.
The impact of capital markets on these pension plans is twofold:
- Investment performance on fund assets
- Changes in economic assumptions on plan liabilities (as measured under international accounting standards)
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