Abstract
This study examines the role of real estate and alternative assets in the investment portfolio of defined benefit (DB) pension plans offered by U.S. firms for the period 2002 to 2010. These plans provide a unique reflection of the confluence of regulatory, accounting, and economic changes that have recently taken place. Results indicate less than a quarter of our sample plans invest in real estate while half invest in alternative assets. Plans that include the assets in their investment strategy tend to have larger market values, lower accumulated pension benefit obligations on a proportional basis, and higher returns.