Marsh & McLennan Cos., New York, will increase the real estate partnership allocation of its $2.3 billion defined benefit plan to 5% from 2% in the next three years, said Mark Roop, treasury analyst. The move brings the plan to its alternatives target of 15% of total assets; the plan also invests 10% of total assets in private equities. It also may add hedge funds, but there are no plans for that yet.
Funding comes from reducing the plans equity allocation to 55% of assets, from 70%; the plan also has 30% in fixed income. Fund officials would like to "lessen exposure to public equities, he said.
Evaluation Associates assisted.