P&I 1,000: The Largest Retirement Plans
2009 P&I 1,000
Issue Date: January 26, 2009
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| Boeing Co. | |
| Assets are in millions of dollars. | |
| Total assets | $68,999 |
| Defined benefit | $42,472 |
| Defined contribution | $26,527 |
| DEFINED BENEFIT PLAN: | |
| Assets in all hybrid plans | $20,700 |
| Employer DB contributions | $500 |
| Benefit payments | $2,352 |
| Asset mix: | |
| Domestic stock | 17% |
| International stock | 14% |
| Domestic fixed income | 50% |
| Private equity | 6% |
| Real estate equity | 4% |
| Other | 9% |
| DEFINED CONTRIBUTION PLAN: | |
| Assets in: | |
| 401(k) | $23,233 |
| ESOP | $3,294 |
| Total DC contributions | $1,815 |
| Asset mix: | |
| Sponsoring company stock | 12% |
| Other domestic stock | 31% |
| International stock | 6% |
| Fixed income | 9% |
| Stable value | 38% |
| Other | 4% |
| As of Sept. 30, Chicago-based Boeing Co.'s total employee benefit assets decreased 15% from a year earlier. Defined benefit assets decreased 14% during the same period; defined contribution assets decreased 16%. | |
| Employer contributions to the defined benefit plan decreased 2%; benefits paid increased 2%. | |
| During the past year, the fund raised its target asset allocation to alternative investments to 27%. That new target consists of raising hedge funds to 6% from 3%; private equity to 6% from 4%; and real estate and timberland, energy and other natural resources to 10% from 4%, while keeping global strategies, which seek inefficiencies across asset classes in long-short, physical and derivative positions, at 5%. It reduced domestic equity to 14% from 24% and kept international equity at 14%, while reducing fixed income to 45% from 46%. Boeing plans to make the changes over two or three years in an effort to reduce volatility and risk, and raise diversification. | |
| Scott Hamp was named director of hedge funds. He was previously senior director-international equity at the National Railroad Retirement Investment Trust, Washington. | |
| Shane Willoughby was named director of real estate and real assets. He was previously investment officer-real estate at the Teachers' Retirement System of the State of Illinois, Springfield. | |
| Greg Uebele was named as director of private equity. He was previously senior investment officer at the Ohio Public Employees Retirement System, Columbus. | |
| All three were new positions. | |
| Michael S. Bennett left as senior manager-U.S. equities to join the endowment fund of the Baylor College of Medicine, Houston, as director of investments. The company is searching for a replacement. | |
| Scarlett Ungurean left as senior manager for defined contributions to join ABA Retirement Funds, the investment arm of the American Bar Association, Chicago, as executive director of its retirement plan. A replacement for her position is expected to be named in early 2009. | |
| Will McLean, CIO of Northwestern University, and Myra Drucker, former executive of General Motors Asset Management and Xerox Corp., were added to the Boeing investment committee to gain insight of their experience. | |
| David Dohnalek was named vice president of finance and treasurer of Boeing. His duties include overseeing the company's defined benefit and defined contribution funds. Mark A. Schmid, Boeing CIO, reports to him. Mr. Dohnalek, who was Boeing's vice president of financial planning and analysis, succeeded Paul Kinscherff, who was named president of Boeing's Middle East operations. | |
| The company closed its defined benefit plan to non-union employees hired after Dec. 31, putting them in a new defined contribution plan. Boeing made the change to better manage retirement plan expenses and reduce financial risk. The change doesn't affect current or former employees and retirees who participate in the existing pension and savings plans. | |
| DEFINED BENEFIT MANAGERS: | |
| Domestic equities: BGI, Chicago Equity, First Quadrant, Northern Trust, Progress, Hotchkis & Wiley, AllianceBernstein, Jacobs Levy, Delaware, DFA, AQR, Kenwood Capital, Next Century, Lord Abbett, Roxbury. | |
| International equities: AQR, CapGuardian, Morgan Stanley, Fisher Investments, Artio, GE Asset, Scottish Widows, Legg Mason, Arrowstreet. | |
| Fixed income: BGI, BlackRock, Drake, Goldman Sachs, JPMorgan, Morgan Stanley, Northern Trust, Payden & Rygel, PIMCO, Principal, Pugh Capital, Wellington, UBS, WAMCO, Progress. | |
| Global REITS: AEW, RREEF. | |
| Cash: JPMorgan. | |
| DEFINED CONTRIBUTION MANAGERS: | |
| Domestic equities: Goldman Sachs, Oppenheimer, Morgan Stanley, TimesSquare, Tygh, Ranger, BlackRock, RCM, Wellington, Northern Trust, SSgA, US Trust. | |
| International equities: Artio, SSgA. | |
| Fixed income: SSgA, BlackRock, PIMCO, ING, WAMCO. | |
| Stable value: Dwight, SSgA. | |
| Life cycle/lifestyle/balanced: BGI. | |
| Russell Investments is investment consultant for both plans. | |
| Key personnel overseeing the investment management of the defined benefit plan are Mr. Schmid; Eric Peterson, managing director-public markets; and Elizabeth Tulach, managing director-alternative investments. Overseeing the defined contribution plan are Brad Leak, director-investment strategy and asset allocation; Andrew Ward, managing director-investment strategy and asset allocation; and Pamela French, director-global benefits. | |
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To purchase a hard copy or electronic reprints, please contact Laura Picariello at (732) 723-0569 or email lpicariello@crain.com.
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