Tue, Oct 25, 2016
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

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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa