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Laxman Pai, Opalesque Asia:

The average funding ratio of 19 U.S. publicly listed corporations with more than $20 billion in global pension fund liabilities totaled 86.2% at the end of 2020, up from 84.9% at the start of the year, said a study.

According to a report from Russell Investments, strong investment returns offset a decrease in the discount rate of more than 70 basis points that brought the total liabilities of the club to more than $1 trillion for the first time.

Russell Investments' annual analysis of 20 publicly listed U.S. corporations with more than $20 billion in pension liabilities revealed that these large plans dubbed the $20 billion club, which represents nearly 40% of all pension and liability assets of U.S. listed corporations, ultimately benefitted from investment gains in 2020 that offset sharp drops in their discount rates.

The analysis, which has been conducted since 2005, also reveals that funding deficits in dollar terms decreased slightly from $150.8 billion in 2019 to $150.3 billion by year's end 2020.

According to the report, assets rose to their highest level since tracking the $20 billion club began in 2005, topping $900 billion for the first time. Assets for the group increased to $901.9 billion in 2020 from $830.2 billion in 2019.

"It was a turbulent ride, but the $20 billion club ended 2020 with a slightly improved funded ratio as markets soared and discount rates dropped," said Justin Owens, director, Investment Strategy ......................

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