BCA on Asset Shifts in Pension Funds

[HenryTo]

As discussed in CFO magazine as well. A shift by the FASB to adopt IAS 19 accounting would mean that smoothing of assets would be abolished - thus forcing major pension funds "to reallocate an average of 9 percent of their assets away from equities and into fixed income to reduce volatility. A swing like that could suck anywhere from $250 billion to $600 billion out of the stock market, according to analyses by Goldman Sachs and Morgan Stanley."

http://www.bankcreditanalyst.com/public/story.asp?pre=PRE-20050223.GIF

That's a lot of money, folks.