- Introduction & Methodology
- Industry Trends
- League Tables
- Vendor Ratings
- BlackRock
- Fidelity Institutional Asset Management
- Goldman Sachs Asset Management
- J.P. Morgan Asset Management
- Legal & General Investment Management America
- Loomis Sayles
- NISA Investment Advisors
- PIMCO
- Prudential
- Wellington Management
- Western Asset
- Conning
- Jennison Associates
- Northern Trust
- Standish Mellon
Industry Trends
Demographics: Size of Plan
>$15B | $5B – $15B | $1B – $5B | $500M – $1B | <$500M | |
ALL 2017 RESPONDENTS | 25% | 27% | 33% | 7% | 8% |
CURRENT PLAN STATUS | |||||
Open | 28% | 30% | 28% | 17% | 36% |
Frozen | 38% | 19% | 52% | 42% | 43% |
Closed | 34% | 51% | 20% | 42% | 21% |
ENDGAME STATUS | |||||
Keep open/maintain | 27% | 25% | 24% | 15% | 27% |
Close/freeze/lump sum | 62% | 68% | 60% | 69% | 13% |
Buy-in/buyout | 13% | 40% | 48% | 46% | 13% |
Continue to manage | 69% | 58% | 68% | 62% | 40% |
Current Plan Status
OPEN TO NEW ENTRANTS AND ACCRUALS |
FROZEN | CLOSED TO NEW ENTRANTS, STILL ACCRUING |
|
ALL 2017 RESPONDENTS | 28% | 38% | 34% |
>$15B | 28% | 38% | 34% |
$5B – $15B | 30% | 19% | 51% |
$1B – $5B | 28% | 52% | 20% |
$500M – $1B | 17% | 42% | 42% |
<$500M | 36% | 43% | 21% |
Your plan’s endgame…
ALL 2017 | >$15B | $5B – $15B | $1B – $5B | $500M – $1B | <$500M | |
Keep open/maintain | 25% | 27% | 25% | 24% | 15% | 27% |
Close for new entrants | 9% | 11% | 8% | 10% | 8% | 0% |
Freeze | 17% | 20% | 25% | 6% | 31% | 7% |
Offer lump sums | 35% | 31% | 36% | 44% | 31% | 7% |
Buyout | 32% | 9% | 38% | 44% | 46% | 13% |
Buy-in | 3% | 4% | 2% | 5% | 0% | 0% |
Manage/de-risk* | 64% | 69% | 58% | 68% | 62% | 40% |
Other | 8% | 7% | 6% | 10% | 0% | 13% |
… and its target funded ratio on a GAAP basis.
>110% | 105%–110% | 100%–105% | <100% | |
ALL 2017 RESPONDENTS | 32% | 34% | 28% | 6% |
CURRENT PLAN STATUS | ||||
Open | 29% | 22% | 36% | 13% |
Frozen | 29% | 41% | 26% | 4% |
Closed | 39% | 33% | 26% | 2% |
ENDGAME STATUS | ||||
Keep open/maintain | 30% | 21% | 35% | 14% |
Close/freeze/lump sum | 28% | 41% | 28% | 3% |
Buy-in/buyout | 38% | 46% | 14% | 2% |
Continue to manage | 34% | 33% | 30% | 3% |
Average Current Funded Ratio
PPA/MAP-21 BASIS | PPA/24-MONTH AVG. SEGMENT RATES BASIS | GAAP/PBO BASIS | |
ALL 2017 RESPONDENTS | 106% | 96% | 91% |
CURRENT PLAN STATUS | |||
Open | 108% | 91% | 88% |
Frozen | 97% | 90% | 91% |
Closed | 114% | 105% | 94% |
ENDGAME STATUS | |||
Keep open/maintain | 106% | 90% | 89% |
Close/freeze/lump sum | 109% | 104% | 93% |
Buy-in/buyout | 107% | 95% | 92% |
Continue to manage | 108% | 96% | 92% |
Asset Allocation
DOMESTIC EQUITY | INT’L EQUITY | ALTER– NATIVES | FIXED INCOME | CASH | |
ALL 2017 RESPONDENTS | 21% | 16% | 12% | 50% | 1% |
CURRENT PLAN STATUS | |||||
Open | 26% | 21% | 12% | 39% | 2% |
Frozen | 16% | 13% | 11% | 59% | 1% |
Closed | 24% | 15% | 13% | 47% | 1% |
ENDGAME STATUS | |||||
Keep open/maintain | 23% | 21% | 13% | 42% | 2% |
Close/freeze/lump sum | 23% | 16% | 14% | 45% | 2% |
Buy-in/buyout | 18% | 14% | 9% | 59% | 1% |
Continue to manage | 20% | 15% | 12% | 52% | 1% |
Average Fixed-Income/Liability Duration (in Years)
FIXED-INCOME DURATION | LIABILITY DURATION | |
ALL 2017 RESPONDENTS | 13.4 | 12.7 |
CURRENT PLAN STATUS | ||
Open | 12.9 | 12.8 |
Frozen | 13.7 | 12.4 |
Closed | 13.5 | 13.0 |
ENDGAME STATUS | ||
Keep open/maintain | 13.4 | 13.5 |
Close/freeze/lump sum | 13.2 | 12.9 |
Buy-in/buyout | 14.0 | 12.5 |
Continue to manage | 13.7 | 12.8 |
Fixed-Income Portfolio Composition
SHORT DURATION | CORE | CORE PLUS | HIGH YIELD | GLOBAL | LONG DURATION | ABSOLUTE RETURN | OTHER | |
ALL 2017 RESPONDENTS | 1% | 9% | 4% | 3% | 2% | 71% | 1% | 7% |
CURRENT PLAN STATUS | ||||||||
Open | 2% | 12% | 5% | 3% | 1% | 72% | 2% | 3% |
Frozen | 1% | 9% | 3% | 4% | 1% | 70% | 1% | 10% |
Closed | 1% | 7% | 4% | 3% | 2% | 73% | 1% | 7% |
ENDGAME STATUS | ||||||||
Keep open/maintain | 1% | 9% | 5% | 2% | 1% | 76% | 2% | 4% |
Close/freeze/lump sum | 1% | 7% | 4% | 4% | 3% | 70% | 3% | 8% |
Buy-in/buyout | 1% | 9% | 3% | 2% | 3% | 73% | 1% | 8% |
Continue to manage | 1% | 8% | 3% | 4% | 1% | 73% | 2% | 8% |
Glide Path in Place?
YES, WRITTEN INTO IPS AS A ‘CONTRACT’ |
YES, WRITTEN INTO IPS AS AN ‘INTENT’ |
YES, BUT NOT WRITTEN INTO IPS |
NO (TOTAL) |
NO, BUT PLAN TO |
NO, AND NO PLANS TO |
|
ALL 2017 RESPONDENTS | 21% | 35% | 19% | 25% | 8% | 17% |
CURRENT PLAN STATUS | ||||||
Open | 10% | 37% | 17% | 37% | 10% | 27% |
Frozen | 27% | 33% | 16% | 24% | 9% | 15% |
Closed | 18% | 38% | 25% | 20% | 5% | 15% |
ENDGAME STATUS | ||||||
Keep open/maintain | 7% | 43% | 14% | 36% | 11% | 25% |
Close/freeze/lump sum | 21% | 45% | 24% | 10% | 3% | 7% |
Buy-in/buyout | 32% | 38% | 14% | 16% | 8% | 8% |
Continue to manage | 24% | 34% | 18% | 24% | 10% | 14% |
Percentage of Portfolio in LDI
AVERAGE IN LDI |
MEDIAN IN LDI |
AVERAGE HEDGE RATIO |
MEDIAN HEDGE RATIO |
|
ALL 2017 RESPONDENTS | 52% | 46% | 56% | 55% |
CURRENT PLAN STATUS | ||||
Open | 41% | 39% | 48% | 50% |
Frozen | 56% | 50% | 62% | 60% |
Closed | 52% | 44% | 55% | 50% |
ENDGAME STATUS | ||||
Keep open/maintain | 44% | 40% | 50% | 50% |
Close/freeze/lump sum | 46% | 42% | 53% | 50% |
Buy-in/buyout | 57% | 53% | 63% | 62% |
Continue to manage | 53% | 49% | 59% | 58% |
Allocation within LDI
DERIVATIVES | TOTAL RETURN FUNDS (I.E. LONG DURATION) |
CUSTOMIZED CASH BONDS (ALL TYPES) |
CUSTOMIZED CASH BONDS—NO BENCHMARK |
CUSTOMIZED CASH BONDS— LIABILITY BENCHMARK |
|
ALL 2017 RESPONDENTS | 18% | 55% | 31% | 3% | 29% |
CURRENT PLAN STATUS | |||||
Open | 12% | 54% | 36% | 0% | 36% |
Frozen | 23% | 56% | 27% | 1% | 26% |
Closed | 16% | 55% | 35% | 7% | 28% |
ENDGAME STATUS | |||||
Keep open/maintain | 16% | 53% | 34% | 0% | 34% |
Close/freeze/lump sum | 21% | 58% | 29% | 8% | 21% |
Buy-in/buyout | 27% | 56% | 26% | 7% | 20% |
Continue to manage | 21% | 51% | 35% | 3% | 31% |
Plan Payment Profile (as a Percentage of Liabilities)
0-5 YEARS | 5-20 YEARS | 20+ YEARS | |
ALL 2017 RESPONDENTS | 24% | 48% | 29% |
CURRENT PLAN STATUS | |||
Open | 23% | 43% | 33% |
Frozen | 27% | 49% | 24% |
Closed | 20% | 50% | 30% |
ENDGAME STATUS | |||
Keep open/maintain | 22% | 44% | 34% |
Close/freeze/lump sum | 20% | 52% | 28% |
Buy-in/buyout | 25% | 50% | 25% |
Continue to manage | 22% | 50% | 28% |
Willingness to Re-Risk
YES | NO, BUT HAVE BOARD APPROVAL TO ACT TACTICALLY |
NO | |
ALL 2017 RESPONDENTS | 47% | 9% | 44% |
CURRENT PLAN STATUS | |||
Open | 52% | 7% | 41% |
Frozen | 39% | 16% | 45% |
Closed | 53% | 3% | 45% |
ENDGAME STATUS | |||
Keep open/maintain | 44% | 7% | 48% |
Close/freeze/lump sum | 48% | 10% | 41% |
Buy-in/buyout | 43% | 6% | 51% |
Continue to manage | 46% | 8% | 46% |
Reasons to Re-Risk
MARKET OUTLOOK |
REGULATORY CHANGE |
FUNDED STATUS CHANGES |
INTEREST RATE CHANGES |
OTHER | |
ALL 2017 RESPONDENTS | 37% | 29% | 82% | 43% | 9% |
CURRENT PLAN STATUS | |||||
Open | 35% | 25% | 70% | 45% | 5% |
Frozen | 39% | 39% | 76% | 52% | 12% |
Closed | 30% | 17% | 96% | 30% | 9% |
ENDGAME STATUS | |||||
Keep open/maintain | 41% | 18% | 76% | 53% | 6% |
Close/freeze/lump sum | 45% | 25% | 80% | 40% | 10% |
Buy-in/buyout | 29% | 29% | 90% | 39% | 13% |
Continue to manage | 31% | 24% | 82% | 41% | 14% |