Annual returns for the defined benefit plan assets of non-profit health-care organizations averaged 6.6% for fiscal year 2014 and -1.6% for fiscal year 2015, said a survey conducted by the Commonfund Institute.
According to the 2014/2015 report, health-care DB plans returned 5.7%, 6% and 5.2%, for the trailing three-, five- and 10-year periods, respectively, for the 2015 fiscal year, compared to 10.4%, 8.8% and 6.2%, respectively, for the same periods averaged for 2014.
In the area of asset allocation, participating organizations' DB plans showed a shift to more alternatives and decreases in fixed income from year to year. In 2015, the average allocation to fixed income was 28% vs. 31% in 2014; 28% to alternatives in 2015 vs. 24% in 2014; 20% to international equities compared to 22%; 19% to domestic equities vs. 21%; and 5% to short-term securities and cash vs. 2% the year before.
Seventy-three non-profit health-care organizations participated in the survey with $62.3 billion in DB assets as of Dec. 31, 2015.