General Dynamics Corp., Falls Church, Va., shifted about $1.3 billion of its $5.8 billion in pension plan assets into various domestic equity asset styles from domestic fixed income. The assets are being shifted to existing managers, said Joseph Gallagher, vice president of Fiduciary Asset Management, which is the plans main fiduciary and consultant and hires all its managers. The change was the result of an asset allocation study conducted by Fiduciary.
The plans new asset allocation is split evenly between domestic equities and domestic fixed income; the allocation was 73% domestic fixed income and 27% domestic equities. Mr. Gallagher said declining federal interest rates contributed to the decision. He said the move was not market timing, as the allocation had been decided when equity markets were outperforming fixed income.