Researchers noted this could change again, however, as high inflation, rising interest rates and the threat of recession dominate the overall economic landscape.
"In the environment facing investors in 2022, with multi-decade high levels of inflation and rising interest rates, the future course of asset allocation decisions could look materially different from what we have seen since the [2007-2009 financial crisis]," the report said.
These were among the other conclusions of the report:
• "Generational mortality tables, possible today with more advanced financial modeling software, have been broadly adopted by nearly all large public plans, and future longevity improvements are now incorporated into standard financial projections."
• "Many public plans have shortened amortization periods, or the period of time required to pay off an unfunded actuarial accrued liability, to align with evolving actuarial best practices. Tightening amortization periods, akin to paying off a mortgage more quickly, has had the effect of increasing short-term costs. In the long run, plans and stakeholders will benefit."
• "The intense focus on public plan investment programs since the Great Recession misses the more important structural changes that generally have had a larger impact on plan finances and the resources necessary for retirement security."
• "Professionally managed public defined benefit plans rebalance investments during volatile times and avoid the behavioral drag observed in retail investment."