GREENWICH, Conn. - Most pension funds are increasing domestic and international equity investments at the expense of fixed-income allocations, according to preliminary reports from the annual sponsors' survey by Greenwich Associates.
Corporate funds increased their domestic equity to 49.5% of assets in 1994 from 46% in 1993, and their international investments to 9.5% from 9%, while fixed income dropped to 21.1% from 26.4%.
Public funds decreased their domestic stock allocations to 40.1% in 1994 from an average of 41.2% in 1993, but international investments jumped to 11.1% from 6.8%, while fixed income dropped to 29.3% from 39.6% of assets.
Foundations and endowments cut their domestic equity allocations to 45.7% from 51.8%, increased international investments to 11.5% from 9%, and reduced fixed income to 27.7% from 29.6%.
The same asset allocation trends are expected to continue through 1997, according to fund officials interviewed by Greenwich as part of the survey.
Additionally, the survey found all types of funds are downsizing staff. And, corporate funds paid lower money management fees on average in 1994 than in 1993, while the average fee for public funds and foundations went up.
The firm surveyed 1,092 corporate sponsors, 323 public plan officials and 205 foundation and endowment officers.