Standard & Poor's: US public pension fund returns expected to exceed expectations.

Standard & Poor's Global Ratings stated in its latest report that the performance of US public retirement funds will exceed typical investment expectations, as they benefit from strong stock market returns. Analysts expect that the pension fund's return rate for the fiscal year ending in June will be between 11% and 12%, mainly driven by significant increases in stock prices. This year's better-than-expected performance further increases the estimated return rate for the 2024 fiscal year pension fund to 16% to 17%. Standard & Poor's pointed out that there is usually a one-year lag between measuring pension fund performance and formal reporting. The report stated that fund managers typically set a minimum return target of at least 7% to maintain funding adequacy. Standard & Poor's also raised its discount rate guidance from 6% to 6.5%, citing expectations for continued market conditions driven by technologies such as artificial intelligence that enhance productivity and private equity returns.