Ford Motor Co., Dearborn, Mich., hired Lehman Brothers to manage at least $3 billion in alternatives, with hedge funds, private equity and real estate each reportedly getting $1 billion. Randall B. Whitestone, Lehman Brothers’ vice president of corporate communications, confirmed that Ford had entered into “a strategic relationship with Lehman Brothers to grow the alternative asset allocation of its pension plan over time.” Mr. Whitestone said he could not provide more details.
Bill Collins, a Ford spokesman, confirmed “a business arrangement” had been made with Lehman Brothers, but declined to provide further details. Kathleen Gallagher, director, asset management, of Ford’s $46 billion U.S. defined benefit plan, did not return a call seeking more information.
Don LeClair, Ford senior vice president and CFO, announced asset allocation changes in November that will cut public equity investments to 30% of total assets, from 50%, and might increase alternatives to as much as 25% from 5%. Fixed income would remain at 45%. Mr. LeClair said during the company’s third-quarter financial results briefing that the new targets will likely be initiated over the next five years.
