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Archive for April 3rd, 2008

Major Pension Trend

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“Based on a study performed in 2006, our asset management group implemented certain changes in the long-run strategic asset allocations of the U.S. defined benefit pension plans. Specifically, we modified the target allocations to increase the fixed income exposure by 20% of total plan assets and to reduce the equity exposure by a corresponding amount. This change in strategic asset allocation was intended to significantly lower the expected volatility of asset returns and plan funded status, as well as the probability of future contribution requirements.”

General Motors 10-K for 2007

major pension trendIf this simple little chart looks more boring than most of the charts I’ve drawn the past month, then either it’s quite deceptive or else I need to find a different approach to tell its story, for it depicts one of the most significant current trends in pension plans: a massive shift away from common stock investment.

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Written by macheide

3 April 2008 at 5:56 pm

Posted in άctuary