April 2021 Pension Finance Update
Pensions finances held steady in April, as higher stock markets offset lower interest rates.
Pension finances held steady in April, as higher stock markets offset lower interest rates. Both model plans we track[1] improved less than 1% last month. Through the first four months of 2021, Plan A is now up 12%, while the more conservative Plan B has improved 3% this year:

Assets
Stocks built on a solid first quarter with their best month of the year in April. A diversified stock portfolio gained 4% in April and is now up more than 10% for the year:

Interest rates fell by more than 0.10% in April while credit spreads continued to narrow. As a result, bonds gained 1%-3% last month but remain down 4%-7% for the year, with long duration bonds performing worst.
Overall, our traditional 60/40 portfolio gained 3% during April and is now up 4% for the year, while the conservative 20/80 portfolio gained 2% in April and is now down 2% for the year.
Liabilities