Textron Inc., Providence, R.I., pension officials are awaiting a study from Morgan Stanley Dean Witter as to whether the fund should more closely match its $1.2 billion bond portfolio to its pension liabilities, said Deborah Imondi, assistant treasurer.
A recent asset/liability study by Watson Wyatt calls for minor tweaking of the $4.7 billion defined benefit funds overall asset mix. Officials are studying whether they eventually want to increase real estate and private equities beyond current targets of 7.5% each, although those levels have yet to be attained.
If the allocation to alternatives is upped, Textron would reduce bonds and public equities.
Meanwhile, Textrons half-dozen U.K. pension funds are contemplating creation of a collective investment fund for their $600 million in assets. If adopted, that would lead to a shift toward specialist managers from balanced, and it is hoped would provide improved performance and lower costs. Textron also is considering hiring a single global custodian and investment management consultant.