Large corporate defined benefit plans in Canada are fully funded
Corporate defined benefit plans of public companies in Canada surged to 100% funding with higher discount rates.
Asset allocations were little changed. Liability-driven investing continued to be at the forefront with about 50% of assets invested in fixed income. Alternative investments did increase to 7.7%, which was the highest allocation since data have been tracked.
The median funded status increased to 100.3% up from 91.5% in 2020. This was the first time the median funding level increased to more than 100% since at least 2010.
Discount rates increased about 50 basis points to 3.1%, up from a 10-year low of 2.57% in 2020. In 2011, discount rates were about 150 basis points higher at 4.72%.
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