The Callan DC Index™
Performance, asset allocation, and cash flows of nearly 90 large defined contribution plans representing more than $140 billion in assets are tracked in the Callan DC Index™.
DC Plans Wrap Up a Respectable 2014
The Callan DC Index™ rounded out 2014 with a respectable total return of 6.8%. The showing was impressive relative to the typical 2035 target date fund (TDF), which returned 5.3% for the year. However, when compared to the average corporate defined benefit (DB) plan (7.7%), the Index’s performance lagged by a margin of nearly one percentage point for the year. This comes after a spectacular relative showing in 2013, when the Index beat the average DB plan by more than 7.5 percentage points. Since inception, the outperformance of DB relative to DC plans now stands at 0.75 percentage points annually.
Weak TDF performance was one reason that DC plans lagged DB plans for the year—TDFs now account for 24% of the DC Index.