Pension Plan Asset Allocation - 12 Year Trend
When debating the data used in the Variable Benefit Plan Modeler, most have assumed a 50% Stock/50% Bond Allocation.
I too, assumed this allocation. After further study of pertinent Fedex retirement documents, I've discovered the plan had an asset allocation of roughly 75% stock / 25% Bonds until the 2009. At that time, the Fund decided to move to a more conservative 50% stock / 50% bond allocation, and has continued to become more conservative each year. In 2015, the plan announced a further reduction ranging from 35-55% Stocks / 65-45% Bonds.
These changes in asset allocation are reasonable and expected. As any employee group grows older the retirement plan must become more conservative to ensure retiree payments can be made.
Asset Allocation since 2009
2009 - 71% Stock / 28% Bond / 1% Other
2010 - Not Available
2011 - 55% Stock / 44% / 1% Other
2012 - 44% Stock / 55% Bond / 1% Other
2013 - 51% Stock / 46% Bond / 3% Other
2014 - 49% Stock / 48% Bond / 3% Other
2015 - 44% Stock / 52% Bond / 4% Other
2016 - 44% Stock / 52% Bond / 4% Other
2017 - 41% Stock / 54% Bond / 5% Other
2018 - 39% Stock / 53% Bond / 8% Other
2019 - 36% Stock / 55% Bond / 9% Other
2020 - 32% Stock / 60% Bond / 8% Other
Note:
Asset Allocation descriptions provided by the fund have changed slightly over this 12 year time period. For simplification and continuity, Bonds = Investment Grade Debt + High Yield Debt + Alternative Credit + Cash.
In Unity,
DLax