Equity Returns Continue to Buoy Plans BOSTON, June 5 /PRNewswire-FirstCall/ -- A third consecutive month of strong performances by global equities overcame an increase in pension plan liabilities to lift the funded status of a typical U.S. corporate pension plan by 0.6 percentage points in May, according to monthly statistics published by BNY Mellon Asset Management. The funded status of the typical plan has improved for three months in a row. Assets for a typical moderate risk portfolio increased 4.1 percent, while liabilities rose 3.3 percent during the month. For the year through May 31, the funding ratio for the typical plan is now up 10.2 percentage points, as represented by the BNY Mellon Pension Liability Index. "We have been anticipating a decline in long Aa corporate bond yields for some time, and in May we began to see a move in this direction," said Peter Austin, executive director of BNY Mellon Pension Services, the pension services arm of BNY Mellon Asset Management. "The 40 basis-point decline we observed in May lowered the discount rate for these bonds to 6.85 percent and drove pension plan liabilities higher. We remain wary of a continued decline in corporate bond yields, which would further increase pension plan liabilities." Austin noted that Standish Mellon Asset Management Company LLC, the fixed income specialist for BNY Mellon Asset Management, continues to see pension plans increase their allotments to long-term investment-grade corporate bonds to protect themselves against the risk of higher liabilities. "Plan sponsors are becoming more knowledgeable of the opportunities available for protecting plan funded status from changes in interest rates. For many plan sponsors, long-term corporate bonds offer a very attractive solution. We are also seeing increasing optimism among plan sponsors that the equity market rally will continue, allowing sponsors to recapture the funding lost so quickly during Q4 2008 and Q1 2009." 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 $19.5 trillion in assets under custody and administration, $881 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 March 2009, except where noted. 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 of The Bank of New York Mellon Corporation, +1-212-922-7859, Web Site: http://www.bnymellon.com/

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