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 Fords $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 companys third-quarter financial results briefing that the new targets will likely be initiated over the next five years.