March 6, 2012 – The outlook for American public pension funds continues to brighten with the news that they gained 16 per cent in 2011.
The increase narrowed the gap between assets and liabilities to its lowest level since 2008, according to a report by Wilshire Associates Inc. The 126 state pension plans reviewed in the study saw the average of assets needed to fulfill pension obligations jump to 77 per cent from 69 per cent the year before.
The growth still leaves 90 per cent of American pension funds unable to fully cover expected liabilities, but that number is down from 98 per cent a year earlier. Increased investment in real estate, private equity and foreign stocks and bonds has also reduced risk.
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