Sat, Dec 10, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest