Boeing Co., Seattle, hired two minority-owned firms to manage assets for its $38 billion defined benefit trust, and has initiated a commission recapture program with a minority-owned brokerage firm, said Gary Bland, vice president-trust investments.
Boeing hired Pugh Capital Management and MDL Capital Management, each to manage $200 million broad-spectrum fixed-income portfolios. The company also gave an additional $95 million to Tiffany Capital for a growth equity strategy. The commission recapture program was initiated with Magna Securities. Mr. Bland said the fixed-income hirings occurred as the company began rebalancing its equity exposure to 60% to 65%, down from the 65% to 70% range.
As changes are required, Boeing will give preference to smaller firms where they are competitive, Mr. Bland said. Boeing also is reducing the number of managers used as it consolidates the Boeing, McDonnell Douglas and Rockwell pension funds, he added. Aside from the defined benefit assets, Boeing has about $21 billion in defined contribution assets.