OCIO INSIGHTS

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Delivering the latest insights and news on topics that matter most to institutional investors

Insider insights

Justin Owens

Director and Co-Head of Strategic Asset Allocation

$20 billion club: Higher rates means…higher return assumptions?

The average expected return on asset (EROA) assumption for the largest U.S.-listed pension plan sponsors increased to 6.70% in 2023—the first time a year-over-year increase has been observed in 19 years of records.

Understanding trends among this group will help all DB sponsors in their fiduciary duties. Looking at the latest corporate disclosures gives sponsors the perspective and broad-stroke trends in the corporate pension industry.

Justin Owens, Director and Co-Head of Strategic Asset Allocation at Russell Investments was recently quoted in FundFire, Pensions & Investments, and PlanSponsor about the largest publicly listed U.S. corporations, known as the $20 billion club.

Read Justin's article

Download research paper

Watch the replay from our recently held webinar where our panel discusses:

Return assumptions: The average expected return on asset (EROA) assumption for the largest U.S.-listed pension plan sponsors increased to 6.70% in 2023—the first time a year-over-year increase has been observed in 19 years of records. See why.
Navigating interest rates: The material increase in rates in 2022 and its impact on EROA assumptions leads to a few important takeaways for plan sponsors. See what they are.
Is re-risking back? Large plans are definitely considering increasing equity-like exposure. See what our recommendations are on this crucial topic.

Business snapshot

Our latest U.S. AUM and client data as of 12/31/2023

	LONGEST CURRENT CLIENT	AVERAGE RELATIONSHIP	# OF CLIENTS*	TOTAL AUM	AVERAGE AUM	MEDIAN AUM
U.S. Defined Benefit	1981	15 years	75	$27.9b	$372m	$117m
U.S. Defined Contribution	1981	19 years	24	$7.8b	$326m	$68m
U.S. Non-Profit & Healthcare	1983	11 years	43	$24.8b	$577m	$131m

AUM and client counts as of December 31, 2023. *Clients may have multiple plans.

Q2

2024

Global
Market
Outlook

Pent-up exuberance

Soft-landing optimism can deliver more near-term market gains but the risks of a sharper economic slowdown later in the year are elevated. Although declining inflation means central banks can start easing in the second half of the year, the lagged impact of previous rate rises is yet to be fully felt.

Read the forecast

Resources for your clients

Curated resources developed for use with your clients

Outsourced CIO (OCIO)

An OCIO partner can elevate your investment program

With rising costs and labor shortages, find out how these four must-haves in a skilled, outsourced chief investment officer provider can help improve investment programs for clients with limited resources and bandwidth.

OCIO investment outsourcing guide

Tools and practical advice to help your clients determine the right investment model for their organization.

What is OCIO and what an organization needs to know

A webpage filled with resources and information on how OCIO outsourcing can help an organization deepen resources, respond rapidly in a crisis, and lower investment costs.

Investment guides

Defined benefit

A Corporate Pension Finance Handbook

The challenge of efficiently managing a pension plan continues to grow for your clients, and simple, practical guidance is more valuable than ever. Our updated fourth edition addresses significant new developments.

Frozen Plan Handbook

Our frozen plan handbook, designed as a simple, illustrative guide for clients who have already frozen–or are considering freezing–their pension plans, may help their decision-making.

Healthcare systems

Healthcare Fiduciary's Guidebook

This guidebook helps manage the complexity surrounding a healthcare fiduciary's investment programs and ensure alignment with an organization's financial goals.

Defined contribution

A Defined Contribution Retirement Plan Handbook

The challenges for clients managing a DC plan continue to become more complex. Our third edition addresses this continued evolution.

Non-profits

The Non-Profit Fiduciaries' Guide

A guide for effectively managing an investment program and meeting mission-driven goals—whether as part of discussions with a non-profit fiduciaries' current investment committee or board or as staff or new committee members who are being onboarded.

The Non-Profit Investment Outsourcing Guide

Provides practical advice, planning tools, and best practice information to help your clients successfully fulfill their non-profit fiduciary responsibilities.

Key reasons why non-profits should consider OCIO

With donors tightening their belts in the face of rising interest rates and inflationary forces, non-profits need to consider growing their current funding pool to guarantee their future while maintaining enough liquidity to fund their immediate activities.

Helpful links

Previously-featured articles