KeyCorp pension plan locks in 4 managers
By Rob Kozlowski | July 17, 2012 2:03 pm
KeyCorp, Cleveland, hired Pacific Investment Management Co., Harding Loevner, Lighthouse Partners and Mesirow Financial as managers for its $900 million cash balance pension plan, confirmed Cathy Fyffe, vice president and retirement plan manager.
PIMCO will run a real-assets strategy; Harding Loevner, international equity; and Lighthouse and Mesirow, hedge funds of funds.
Ms. Fyffe could not provide portfolio sizes and was unable to say which managers were replaced; she also could not provide the names of the current managers of the plan that are not affected.
According to KeyCorp.'s most recent 10-K filing, the cash balance plan's actual asset allocation as of Dec. 31 was 40.1% domestic equities; 24.4% domestic fixed income; 20.6% international equities; 4.8% convertible securities; 4.4% short-term investments; 2.7% emerging markets equities; 1.3% each, international fixed income and insurance company contracts; and 0.4%, multistrategy investment funds.
Also, PIMCO and Harding Loevner's strategies were added as investment options for KeyCorp's $1.3 billion 401(k) plan. The plan also added a large-cap value equity fund run by Robeco Boston Partners and a large-cap growth fund run by Jennison Associates.
Ms. Fyffe could not say whether any options were replaced. The changes give the plan a total of 16 investment options.