Rockwell Collins Corp.'s $1.9 billion pension fund is considering investments in private equity and real estate, both new asset classes, said Doug Stenske, treasurer of the Cedar Rapids, Iowa, company. The fund could invest $110 million, he said. "We are evaluating different styles of investments than we have," he said. "Private equity and real estate would be most likely."
Funding would come from a $125 million employer contribution made in the fourth quarter. Currently, $110 million of that is in an S&P 500 index fund that Mellon Capital was hired to manage. The other $15 million was used for benefit payments and expenses. Mr. Stenske said fund officials hope to make a decision on new allocations and searches this year. Shields Associates is assisting.