Pension Plan Asset Allocation - 12 Year Trend
09-26-2020, 10:05 AM
#1
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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
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
09-30-2020, 12:36 PM
#2
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Posts: 1,838
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
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
Remember pension funds are not trying to hit grand slams they are going for a single or a double consistently. They are most likely shooting for a 6-7% return.
Of note: I think I remember hearing at a hub turn meeting our current pension fund had made an average return of 6.5% annually
09-30-2020, 06:16 PM
#3
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Originally Posted by Noworkallplay
Big money manager portfolios look similar. We all know a downturn is most likely in the near future and the big boys are moving money accordingly. After the 08-09 dump many went aggressive again much like our fund/trust managers. Its natural market cycles. Its interesting to look and try to model your personal portfolio similarly. May be a heads up call.
Remember pension funds are not trying to hit grand slams they are going for a single or a double consistently. They are most likely shooting for a 6-7% return.
Of note: I think I remember hearing at a hub turn meeting our current pension fund had made an average return of 6.5% annually
Remember pension funds are not trying to hit grand slams they are going for a single or a double consistently. They are most likely shooting for a 6-7% return.
Of note: I think I remember hearing at a hub turn meeting our current pension fund had made an average return of 6.5% annually
Remember, if you make it to 65, a majority will have 20 years, and a good chunk of people will have 30+ years. Significant investments in bonds erodes the buying power.
09-30-2020, 06:19 PM
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Posts: 1,804
Originally Posted by TransWorld
My investment manager has 12 - 18 months of withdrawals sitting in cash equivalents when retired. That handles a recession. Otherwise, 100% in stocks. They have selected stocks that give an overall less of a decline on the down side and more of an increase on the up side, by a few percent after expenses. They have less risk than an index fund. Significantly better long term return. Runs counter to the old rule of a balance of stocks and bonds. But long term analysis (they have been in business for 40+ years) shows they are correct.
Remember, if you make it to 65, a majority will have 20 years, and a good chunk of people will have 30+ years. Significant investments in bonds erodes the buying power.
Remember, if you make it to 65, a majority will have 20 years, and a good chunk of people will have 30+ years. Significant investments in bonds erodes the buying power.
09-30-2020, 06:25 PM
#5
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Originally Posted by USMCFDX
Put the who in it - inquiring minds want to know
Incidentally, minimum half a million per client with them. They manage for 75,000 clients.
10-01-2020, 02:14 AM
#6
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Posts: 1,838
Originally Posted by TransWorld
My investment manager has 12 - 18 months of withdrawals sitting in cash equivalents when retired. That handles a recession. Otherwise, 100% in stocks. They have selected stocks that give an overall less of a decline on the down side and more of an increase on the up side, by a few percent after expenses. They have less risk than an index fund. Significantly better long term return. Runs counter to the old rule of a balance of stocks and bonds. But long term analysis (they have been in business for 40+ years) shows they are correct.
Remember, if you make it to 65, a majority will have 20 years, and a good chunk of people will have 30+ years. Significant investments in bonds erodes the buying power.
Remember, if you make it to 65, a majority will have 20 years, and a good chunk of people will have 30+ years. Significant investments in bonds erodes the buying power.
10-01-2020, 03:39 AM
#7
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Originally Posted by USMCFDX
Put the who in it - inquiring minds want to know
10-01-2020, 04:37 AM
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Posts: 1,804
Originally Posted by TransWorld
Send me a PM. Will be happy to share. I have no vested interest in them. No kickbacks. Not going to publish it publicly, though.
Incidentally, minimum half a million per client with them. They manage for 75,000 clients.
Incidentally, minimum half a million per client with them. They manage for 75,000 clients.
10-01-2020, 04:45 AM
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Posts: 1,804
Originally Posted by Chilitime
Hey USMCFDX, check out buffettandbeyond dot com. I have been using them for years and have been crushing the S&P. They are a research and info service that is 12.95 a month, recommend a 30 stock portfolio, are buy and hold types, and have a track record of over 20 years of killing it. I pay for it myself, no financial gain for me recommending. If you want someone to manage your money, I’ve heard them say they have advisors they can link you up with. For 2020 YTD, we are beating the S&P by over 20%, with less volatility than the market. I have used many different types of advisors, inc,using wealth managers over the years... this is the first service that I truly believe can beat the market (and I have been). I think you can sign up for a free trial, but at a minimum, spend 12 bucks! I offer to pay for it to the FO’s I fly with. 96% of all professional money managers do NOT outperform the market over any ten year period. This guy does and has the math and track record to prove it. PM me if you wanna chat about it.
10-01-2020, 07:58 AM
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Originally Posted by Noworkallplay
Completely agree with a personal account but that is not how big money managers handle pension trusts.
Just for perspective. . .
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