Northrop Grumman Corp.'s proposed acquisition of TRW Corp., Cleveland, triggers uncertainty as to how much of TRW's $2.9 billion in defined benefit and $2.4 billion in defined contribution assets will be combined with Northrop Grumman's $13.9 billion in defined benefit and $5 billion in defined contribution assets.
As of Dec. 31, the asset allocation for Los Angeles-based Northrop Grumman's defined benefit plan's allocation was 42% domestic equities (including 5.9 percentage points in company stock), 16% international equities, 27% fixed income, 7% venture capital and real estate, and 8% cash, according to the company.
TRW's asset allocation, as of Sept. 30, was 46.4% domestic equities (including 4.8 percentage points in company stock), 15.7% international equities, 21.5% domestic fixed income, 10.4% real estate equity, 2.8% international fixed income, 2.8% cash, and 0.4% private equity, according to the company.
Overlapping managers for the defined contribution funds include PRIMCO for stable value and PIMCO, used by Northrop Grumman for high-yield bonds and by TRW for broad fixed income.
Northrop announced plans to divest TRW's automotive group, based in Livonia, Mich., which has 64,000 of TRW's total 93,000 employees. A breakdown of TRW's automotive pension assets wasn't available.
Officials at TRW and Northrop Grumman didn't return calls seeking comment.