Kimberly-Clark Corp., Irving, Texas, is seriously considering implementing a liability-driven investing strategy for its $4 billion pension plan, according to sources familiar with the company. One money management executive, who declined to be identified, said his firm recently discussed LDI strategies with Kimberly-Clark's pension executives. "They were interested most in cost and whether they could still add alpha … at least, that's what their questions centered on."
Another executive at a money management firm used by the company said the fund is considering some form of an LDI strategy as well as increasing its alternative investment portfolio to boost returns because pension liabilities have increased in recent years.
According to the company's most recent annual report, unfunded liabilities totaled about $1.4 billion at the end of 2005, from about $1.2 billion at the end of 2004. According to the annual report, the increase in liabilities was due to lower discount rates.
Jaspal Kang, manager-finance at Kimberly-Clark, did not return calls by press time.
