Pension funds sponsored by Electronic Data Systems Corp., Eli Lilly & Co. and Kellogg Co. had the best estimated returns for the year ended Dec. 31 out of the 100 largest U.S. corporate pension funds, according to a study by FutureMetrics, an economics research and forecasting firm. The EDS fund returned an estimated 24.24%; Lilly, 20.25%; and Kellogg, 19.58%.
FPL Group Inc. and Wachovia Corp. had the lowest estimated returns among the 100 funds for 2006 8.16% and 8.43%, respectively, according to the study.
The top 25% of the 100 largest corporate pension funds had a 16.11% median return for the year and saw their funding levels improve by a median 9.5%. The bottom 25% of the funds had a median return of 10.46% for the year and saw their funding improve by a median 8.88%.
An earlier report by FutureMetrics mistakenly estimated Duke Energy Corp.'s investment return at 7.75%; the actual return was 14.1%. FutureMetrics incorrectly estimated the return because a large acquisition by Duke in October increased its pension assets by 41%, the research firm said.