2023 Asset Allocations in Fortune 1000 Pension Plans

This report presents an analysis of the 2023 asset allocations of defined benefit (DB) pension plans sponsored by Fortune 1000 companies. It details the aggregate funded position of these plans, which remained stable at approximately 99.1% by year-end, indicating a fully funded status. The report outlines how discount rates and investment returns influenced pension liabilities and asset levels throughout the year. It notes a shift in asset allocation trends, with a decrease in public equity investments and an increase in fixed-income investments. The analysis also highlights the correlation between a pension plan's design status and its asset allocation, particularly in relation to frozen plans. Additionally, the report discusses changes in asset holdings, revealing a decline in public equity allocations and an increase in debt and alternative assets. The findings emphasize the importance of risk management and strategic adjustments by plan sponsors in response to market conditions.