The Wilshire 2016 Report on City & County Retirement Systems: Funding Levels and Asset Allocation is based upon data gathered by Wilshire from the most recent financial and actuarial reports available and includes 109 city and county retirement systems. Of these 109 systems, 99 systems reported actuarial values on or after
"Despite relatively strong performance from
For the 99 city and county retirement systems that reported actuarial data for 2015, pension assets grew by 0.4%, or
"On average, city and county pension portfolios have a 63.9% average allocation to equities, including real estate and private equity, and a 36.1% allocation to fixed income and other non-equity assets," Walker added. "This equity allocation is slightly lower than the 67% equity allocation a decade prior in 2005. However, asset allocation varies by retirement system. Thirty-three of the 109 retirement systems have allocations to equity that equal or exceed 75%, and 9 systems have an equity allocation below 50%."
Wilshire forecasts a median return on city and county pension assets equal to 6% per annum. This 6% estimate is 1.5% below the median actuarial interest rate assumption of 7.5%. It's important to note that Wilshire's standard asset class assumptions range over a conservative 10+-year time horizon, while pension plan interest rate assumptions typically project over 20 to 30 years. Using Wilshire's 30-year long-term asset class assumptions, the median estimated return would be 7.3%.
Through its investment consulting services to public and corporate clients,
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*Client assets are as represented by Pensions and Investments, detailed in P&I's "Largest Retirement Funds" and P&I's "Largest Money Managers (
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