DIS » Topics » Long-term return on assets

This excerpt taken from the DIS 10-K filed Dec 7, 2005.
Long-term return on assets – The long-term rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income, and alternative investments. When determining the long-term return on plan assets, the Company considers long-term rates of return on the asset classes (both historical and forecasted) in which the Company expects the pension funds to be invested. The following rates of return by asset class were considered in setting the long-term return on assets assumption:
         
Equity Securities
    8% – 10%  
Debt Securities
    4% – 7%  
Alternative Investments
    8% – 20%  

     

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