Large pension plans favor separate accounts

Large pension plans heavily favor separate accounts over other investment vehicles, particularly exchange-traded funds and mutual funds, according to those that provided investment mix breakouts in response to Pensions & Investments’ annual top 1,000 retirement plan sponsor survey.

Separate account weights ranged from 46% to 100%. The large plans also tended to use commingled vehicles.

Investment mixes varied among pension plans with $1 billion to $10 billion in assets. Half of the plans, six, had more than 50% of their assets invested in commingled vehicles, and five had the majority placed in separate accounts.

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