The 2011 Pension Funded Study includes analysis of asset allocation. In 2010, the percentage of pension plan assets invested in equities decreased from approximately 45% to 44%.



Meanwhile the fixed income allocations were unchanged at 36%.



The allocation to other investments increased from 19% to 20% during 2010. The minor increase to other asset classes reflects, in part, greater diversification of portfolios to help reduce funded status volatility.



We believe that companies should consider employing dynamic investment policy strategies for de-risking their plans as they move from underfunded levels to fully funded levels, reducing their equity allocations and increasing liability-matched fixed income allocations.