R.J. Reynolds Tobacco Holdings Inc., Winston-Salem, N.C., will begin an asset-liability study of its $2 billion pension plan in January, said Kathryn Premo, director of pension and investments. It will be finished by the end of the first quarter, she said. The current asset allocation is 45% domestic equity, 25% fixed income, 20% international equity and 10% hedge funds. Frank Russell is advising.
Separately, Metropolitan West Asset, which runs $120 million in an enhanced index portfolio benchmarked to the S&P 500, and Alliance Capital, which manages $120 million in active domestic large-cap growth equities, were put on an informal watch for performance, Ms. Premo said. The plan is reluctant to terminate these managers because of strong past performance, she said. The status of each manager will be determined over the next month. Frank Russell is advising.
Chris Scibelli, Metropolitan West marketing director, declined comment; Stephanie Giaramita, Alliance Capital spokeswoman, did not return calls seeking comment by press time.