Northern exposure
Canadian corporate DB plans continue to be well funded with fixed-income-heavy portfolios.
Funded status up: The median funded status of Canadian corporate DB plans increased around 3 percentage points in 2015, to 91.8%. The aggregate funded status is approaching 100%.
Discount rate rises: Low discount rates continue to be a headwind for improving funded status. Plans received a mild reprieve in 2015, with the average discount rate increasing 11 basis points.
Allocations steady: Plans continue to be heavily allocated to fixed income and equity. Longer-
term portfolios have seen higher allocations to fixed income, and less home-country equity bias.
The top 10: The average funded status of plans in this universe is 89.9%. The largest plans are better funded than the average plan. Although fixed income still dominates among the largest plans, allocations to alternatives are twice the average level.
Source: Company filings as of latest fiscal year
Compiled and designed by Aaron M. Cunningham and Gregg A. Runburg
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