Equity exposure has been cut in the biggest option in San Francisco-based Bechtel Power Corp.'s 401(k) plan - its $1.9 billion global multiple asset fund.
Peter Landini, senior vice president of Fremont Investment Advisors, which runs the retirement assets of Bechtel, said U.S. equities were cut to about 15% of total assets from 21% to 22% at the end of September. Foreign stock holdings have been sliced to 30% from 48% at the end of August.
Assets from the lowered exposures temporarily have been parked in cash, which is now about 28% of the fund.
Mr. Landini cited higher U.S. interest rates, low dividend yields and the growing attractiveness of bond yields as reasons for the change.