Wed, May 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Textron pension plan wants to invest in private debt structures (1)

Tuesday, April 22, 2014

amb
Charles Van Vleet
Benedicte Gravrand, Opalesque Geneva:

As a private pension fund CIO at Textron, Charles Van Vleet gives insight into his strategic asset allocation over the next 12 months and his best tactical allocation ideas. He explains why he is increasing his allocation in private debt structure funds, and why corporate plan sponsors often prefer private equity alignment and structures but also want to control extension risk.

Textron’s pension plan is currently 50% invested in public equity, 20% alternatives and the balance in fixed income.

Within the fixed income allocation, "we would be considered very duration-light, LDI -light, we’re not particularly concerned about surplus volatility for Textron…," Mr. Van Vleet says during a recent Opalesque video interview. Furthermore, the corporate plan sponsor is only 18% hedge ratio - probably about half as much as its peer group.

LDI (Liability Driven Investment) is a form of investing in which the main goal is to gain sufficient assets to meet all liabilities, both current and future.

Within alternatives, Textron’s largest allocation is in direct core real estate, 3% in hedge funds and the balance in private equity.

With regards to Textron strategic and tactical allocation over the next year, the objective this year is to increase the direct core r......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Avenue Capital raises $700m for new energy hedge fund[more]

    Komfie Manalo, Opalesque Asia: Global hedge fund Avenue Capital Group, which manages $13bn in assets as at end March, reported that it raised an additional $700m for a new energy fund that it plans to launch in May. Avenue Ca

  2. SEC charges funds of hedge funds Alpha Titans, executives, and auditor for improper expense allocations[more]

    Update: Please note the important updated information at the end of the article.The Securities and Exchange Commission today announced charges against a Santa Barbara, Calif.-based hedge fund advisory firm and two executives involved in improper allocations of fund assets to pay undisclose

  3. Opalesque TV: Aequam Capital: Asset management industry will be mainly quantitative going forward[more]

    Benedicte Gravrand, Opalesque Geneva: Before starting his boutique in 2010, Arnaud Chretien, co-founder and CIO of Aequam Capital, worked ten years as a market trader and 18 years as a quantitative and systematic fund manager for Soc

  4. Class-action lawsuit accuse hedge fund Standard General of holding American Apparel hostage[more]

    Komfie Manalo, Opalesque Asia: A shareholder class-action suit filed on Wednesday accused New York-based hedge fund Standard General of holding American Apparel hostage. It would reportedly reap huge benefits if the clothing company declared bankruptcy. Standard General is the controlling sto

  5. Aberdeen Asset Management suffers high emerging market outflows[more]

    From FT.com: Investors withdrew billions of pounds from Aberdeen Asset Management as money continued to drain from Europe’s largest independent investment group because of worries over emerging markets. Net outflows for the six months to the end of March rose to £11.3bn, higher than market expectati

 

banner