American Airlines, Fort Worth, is eliminating balanced management from its $4.4 billion defined benefit plan and shifting the fixed-income assets in balanced portfolios to U.S. and international equities. American's domestic balanced managers completed the liquidation of $450 million in fixed income last month. International balanced managers are expected to liquidate about $150 million in foreign bonds by the end of the year.
American's balanced managers will manage equity-only portfolios following the reallocation, which boosts overall equity exposure to 45% from about 28%, and more than doubles international equity.
