Friday, April 23, 2010

Motion Picture Industry Pension Investments

What does the Motion Picture Industry Pension Plan invest its money in?

Since I get asked the above a lot, here's the broad-brush answer from the Plan itself:

Pension Assets -- $2.5 billion

Cash - 3%

Government bonds - 11%

Corporate bonds - 18%

Corporate stocks - 23%

Real estate - 5%

Mutual funds - 17%

Investment entities - 11%

Collective Trusts and pooled accounts - 9%

Other - 2%

MIPHP building - 1%

This allocation shifts from time to time at the behest of the Motion Picture Industry Pension Plan's board of directors. They have a fiduciary duty to act on behalf of the Plan participants (like any pension board.)

There appears to be enough cash tucked away to pay for the participants' pensions, which makes me glad. (If the sun reaches its red star phase, of course all bets are off.)

1 comments:

adin said...

The pension giants calculate a much smaller, but still significant, $55 billion shortfall. Discounting liabilities at these higher rates, however, ignores the probability that actual returns will fall below expected levels and allows pension funds to paper over the magnitude of their problem.
new pension

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