Lucent Technologies Inc., Murray Hill, N.J., changed the asset allocation of its $34 billion U.S. pension fund to an even split between equities and fixed income, spokeswoman Joan Campion confirmed. The previous allocation was 75% equities and 25% fixed income. The reallocation followed a regular review of the pension fund's investment strategy, which was completed earlier this year, she said.
Ms. Campion would not elaborate on change, including whether any managers were hired or terminated. She said the fund's assets are "well in excess" of its liabilities and that the reallocation was simply part of a regular investment strategy review, which the Lucent board of directors conducts every three years to five years.
The pension fund is managed by Lucent Asset Management, a wholly owned subsidiary of the company, with the help of outside investment consultants, which Ms. Campion refused to identify.
The reallocation wasn't connected to Lucent's merger with Alcatel SA and both companies continue to operate their pension plans independently, Ms. Campion said.
External managers handling Lucent assets as of September 2004 included JPMorgan Asset Management, AEW Capital Management, Fidelity, Dimensional Fund Advisors, Barclays Global Investors, BlackRock, PIMCO, Putnam Investments, State Street Global Advisors and Lord Abbett, according to the 2006 Money Market Directory. Cambridge Associates is consultant, according to MMD.