Global Pension Finance Watch: Fourth Quarter 2023. Copyright © 2024 WTW. All rights reserved.wtwco.comPage 1 of 13Volatile Fourth Quarter Index ResultsMore dovish Central Bank policies across key markets in Q4 2023 led to a more volatile quarter than Q3marked by discount rate decreases across all countries. Asset performance was largely positive, andinflationary pressures remain but show signs of subsiding. Overall, the combined effects drove negative thirdquarter pension index results for all countries, with the exception of Japan. The pension index decreased inall regions over the full year, with decreases in the single digits, except for in Japan and the United States,where strong equity performance drove single digit increases.While it is always the case that Global Pension Finance Watch captures results at the end of each quarter,we particularly want to highlight the point in time view of this publication in light of recent volatility. WTWsupports the daily monitoring of pension funded status and other key pension financial metrics for thoseorganizations wishing to inform key business decisions.About this reportGlobal Pension Finance Watch, published quarterly, reviews how capital marketperformance affects defined benefit pension plan financing in major retirementmarkets worldwide, with a focus on linked asset/liability results. We cover definedbenefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, theU.K. and the U.S. Specific plan results will vary, often substantially, based onliability characteristics, contribution policy, portfolio composition and managementstrategy among other factors. The passage of time since quarter end, may alsohave a significant impact on pension plan financing.The impact of capital markets on these pension plans is twofold:Investment performance on fund assetsChanges in economic assumptions on plan liabilities(as measured under international accounting standards)If you have questions or comments about this report, please contactNathan Pavlik in Chicago at nathan.pavlik@wtwco.com orDavid Finn in London at david.finn@wtwco.com.Change in WTWPension IndexQ4 2023Last 12MonthsBrazil-1.0%-1.8%Canada-3.3%-0.6%Eurozone-9.0%-1.3%Japan0.1%9.6%Switzerland-4.5%-6.5%U.K.-6.4%-5.0%U.S.-1.7%6.1%The WTW Pension Index is the ratio of the marketvalue of assets to the projected benefit obligation(PBO) for a hypothetical benchmark plan.Global Pension Finance Watch – Fourth Quarter 2023–15%–10%–5%0%5%10%15%BrazilCanadaEurozoneJapanSwitzerlandU.K.U.S.Change in WTW Pension IndexFourth Quarter 2023Last 12 MonthsGlobal Pension Finance Watch: Fourth Quarter 2023. Copyright © 2024 WTW. All rights reserved.wtwco.comPage 2 of 13Role of monitoring as part of successful global pension risk managementThose organizations that monitor their global pension plans are prepared to act quickly whenmarket conditions evolve and have been most successful in achieving their cos...
