Market Rally, Wider Spreads Drive Gains BOSTON, April 6 /PRNewswire-FirstCall/ -- A powerful stock market rally and wider spreads for corporate bonds combined to improve the funding status of a typical U.S. corporate pension plan by 6.4 percentage points in March, according to monthly statistics published by BNY Mellon Asset Management. "This was, by far, the best month for pension plans since the funding status of these plans began deteriorating in May 2008," said Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management. Assets for a typical moderate risk portfolio jumped 5.6 percent, while liabilities fell 3.5 percent during the month. For the year to date, the funding ratio for the typical plan is now up 5.7 percentage points, as represented by the BNY Mellon Pension Liability Index. "The strong rebound in stock markets around the world provided much-needed relief for pension funds," Austin said. "They also benefited as long double A corporate bond yields rose 60 basis points during March, which contributed to an increase in the double A corporate discount rate from 6.84 percent to 7.19 percent, driving down the value of liabilities." Still, Austin warned plans face the threat of narrowing spreads and lower yields. He said, "With corporate bond yields well over their historic levels, we expect them to drop over time, which would increase the liabilities for these plans. If that were to happen, pension plans will need either more help from the equity markets or increasing skills in managing their exposure to pension liabilities." Notes to Editors: BNY Mellon Asset Management is the umbrella organization for The Bank of New York Mellon Corporation's affiliated investment management firms and global distribution companies. The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $20.2 trillion in assets under custody and administration, $928 billion in assets under management, services more than $11 trillion in outstanding debt, and processes global payments averaging $1.8 trillion per day. Additional information is available at http://www.bnymellon.com/ All information source BNY Mellon Asset Management as at 31 December 2008. This press release is issued by BNY Mellon Asset Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. A Bank of New York Mellon Company DATASOURCE: The Bank of New York Mellon Corporation CONTACT: Mike Dunn, +1-212-922-7859, Web Site: http://www.bnymellon.com/

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