Sun, Sep 21, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali