Originally Posted by DLax85

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