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Research

Funded Level for UK Pensions Tops 90% in September

Aggregate deficit declines by £62.4 billion.

By Michael Katz

The aggregate deficit of the nearly 5,800 pension plans in the Pension Protection Fund’s PPF 7800 Index fell £62.4 billion to £158 billion ($209 billion) at the end of September, from a deficit of £220.4 billion at the end of August. During this time, the funding ratio increased to 90.6% from 87.6%, according to the PPF.


As of the end of September, the PPF 7800 had total assets of £1.52 trillion, and total liabilities of £1.68 trillion; there were 4,079 plans in deficit, with 1,715 that were in surplus. At the same time last year, the deficit was £373.5 billion, and the funding ratio was 79.8%. There were 4,261 plans in deficit at the end of August 2017 (73.5%) and 4,792 plans in deficit at the end of September 2016 (82.7%).

The number of plans in surplus rose to 1,715 at the end of September (29.6% of plans) from 1,533 at the end of August (26.5%). There were 1,002 plans in surplus at the end of September 2016 (17.3%)

Total assets decreased by 1.8% over the month, but rose 3.4% from September of 2016. Total liabilities at the end of September decreased 5.1% from the previous month, and 9% over the year.

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The aggregate deficit of all pension plans in deficit at the end of September decreased an estimated £52.6 billion to £240.5 billion from £293.1 billion at the end of August. At the end of September 2016, the aggregate deficit of all pension plans in deficit was £414.2 billion. Meanwhile, the total surplus of plans in surplus increased to £82.5 billion at the end of September, from £72.7 billion at the end of August. At the end of September 2016, the total surplus of all plans in surplus was £40.7 billion.

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Home > News > Newsmakers > Princeton Endowment Returns 12.5%
Newsmakers

Princeton Endowment Returns 12.5%

Investments' value rises by $1.6 billion to $23.8 billion.

By Michael Katz

Princeton University’s endowment reported a 12.5% investment gain for the fiscal year that ended June 30, increasing the endowments’ value by $1.6 billion to $23.8 billion.

The returns outpaced last year’s results, when the endowment lost 2.7%, but were shy of the 12.9% return from the broad universe of college and university endowments as measured by consulting firm Cambridge Associates.

The endowment’s average annual return over the past 10 years is 7.1%, which the university said places the endowment among the top 1% of 458 institutions listed by the Wilshire Trust Universe Comparison Service.

Further details of the fund’s performance have not yet been disclosed. The results will be certified by the Princeton University Investment Co. (PRINCO), which manages the endowment, at a meeting of its directors on Oct. 19.

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“The university relies on earnings from the endowment to cover more than half of its operating budget, as well as to help fund its highest-priority strategic initiatives,” said Provost Deborah Prentice in a statement. “These earnings enable the university to provide generous financial aid.”

The asset allocation set by PRINCO is heavy on equities, with 95% of the portfolio dedicated to them. However, only 10% of the portfolio is allocated to US equities. Large portions of the portfolio are also allocated to high-return categories, such as international, hedged, and private investments.

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