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While funding levels remain the key issue, risk management increased in importance across both corporate and public funds.
DB plans dominate both corporate and public plans, but DC plans are anticipated to make inroads with corporate plans over the next 10 years.
Allocations to Canadian equity continued their decline while international equity and hedge fund allocations increased modestly.
Corporates are seeking to derisk and diversify while publics actively seeking returns to close persisting funding gaps.
Use of “alternatives” continues to broaden as funds seek return and diversification benefits.
Average fees paid increased in all asset classes, likely driven by the move towards specialty product categories.
Total U.S. institutional assets increased for the fifth consecutive year, this year appreciating by approximately 16%.
Strong equity markets buoyed DC equity allocations in 2014, while target date funds continue to grow.
Investors shifted towards passive U.S. equities this year, but the commitment to active in other categories remains strong.
Asset allocation targets are expected to shift away from equities and towards fixed income and alternatives over the next three years.

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