Data & Research January 3, 2013

Record Year-End Pension Deficit for S&P 1500

S&P 1500 plan sponsors finished 2012 with the highest year-end pension deficit ever.
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The aggregate deficit in pension plans sponsored by S&P 1500 companies increased by $73 billion to a record year-end high of $557 billion as of December 31, 2012, according to Mercer. This deficit compares to an aggregate pension deficit of $484 billion on December 31, 2011. While the December 31, 2012, funded ratio of 74% rebounded from a record low of 70% as of July 31, 2012, overall the ratio declined from the 75% funded ratio seen at December 31, 2011.    

Despite overall positive annual asset growth of approximately 16% in the broad U.S. equity market, falling interest rates were once again the story for the funding status of pension plans as discount rates fell by more than 80 basis points as compared with year-end 2011.  

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For many companies, a larger pension deficit will drive higher profit and loss (P&L) expense, and decreased earnings in 2013.

Deals & People January 3, 2013

RIA Merger Opens Atlanta Office

Independent Wealth Advisors Group and TBCI have merged into a registered investment advisory with total assets under management of more than $100 million.
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The newly merged firm operates under the name Independent Wealth Advisors  and uses the hybrid model, in which advisers are overseen by a state regulator or by the Securities and Exchange Commission as registered investment advisers, and by FINRA as licensed brokers.

According to David Harrison Miller, founder of Independent Wealth, the firm is the country’s youngest to use the hybrid strategy. “We are excited to launch this new partnership as our firm continues to increase exposure in the Southeast and across the nation,” Miller said.

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Independent Wealth Advisors was founded in 2003, but Miller points out that part of its strength stems from combining Generation X and Y technology and investment analysis with Baby Boomers’ life experience.

Independent Wealth has its corporate headquarters in Atlanta’s Buckhead financial district.

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