At Horizon Actuarial Services, LLC, we are actuaries, not investment professionals. Therefore, when developing assumptions as to what returns a pension plan’s assets might be expected to earn in the future, we look to our colleagues in the investment advisory community. Each year, we survey different independent investment advisors and ask them to provide their “capital market assumptions” – their expectations for future risk and returns for different asset classes in which pension funds commonly invest.
The information gathered from this survey can help answer the commonly-asked question: “Is my plan’s investment return assumption still reasonable?” Of course, there are many factors to consider when evaluating a plan’s investment return assumption, such as its asset allocation and the maturity of its participant population. Any of these factors can make the expected return for one plan very different from others. Therefore, this report does not opine on the reasonableness of any one plan’s investment return assumption. Nevertheless, we hope this report will be a useful resource for trustees, actuaries, and investment professionals alike.
Horizon Actuarial sincerely thanks the 23 investment advisors who participated in the 2014 edition of this survey.
The report on the results of the 2014 survey can be viewed below.
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2014 Survey of Capital Market Assumptions
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This is the third edition of the survey for which we have published a report. The 2013 edition of our survey can be found here, and the 2012 edition can be found here.
The information gathered from this survey can help answer the commonly-asked question: “Is my plan’s investment return assumption still reasonable?” Of course, there are many factors to consider when evaluating a plan’s investment return assumption, such as its asset allocation and the maturity of its participant population. Any of these factors can make the expected return for one plan very different from others. Therefore, this report does not opine on the reasonableness of any one plan’s investment return assumption. Nevertheless, we hope this report will be a useful resource for trustees, actuaries, and investment professionals alike.
Horizon Actuarial sincerely thanks the 23 investment advisors who participated in the 2014 edition of this survey.
The report on the results of the 2014 survey can be viewed below.
- – - – - – - – - – - – - – - – - – - – - – - – - – - – -
2014 Survey of Capital Market Assumptions
- – - – - – - – - – - – - – - – - – - – - – - – - – - – -
This is the third edition of the survey for which we have published a report. The 2013 edition of our survey can be found here, and the 2012 edition can be found here.
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