Boeing Co., Chicago, plans to raise its $50.4 billion pension fund’s alternative allocation to 27% of assets and cut its U.S. equity allocation to 14% over the next two or three years, said spokesman Todd Blecher. Plan executives want to reduce volatility and risk, and raise diversification, he said.
The fund’s targets for its new allocation are 45% fixed income, from 46%; 14% each U.S. and international equity, from 24% domestic equity and 14% international; 6% hedge funds, from 3%; 6% private equity, from 4%; and a new 10% allocation to real estate and timberland, energy and other natural resources, from 4% real estate. Global strategies, which seek inefficiencies across asset classes in long-short, physical and derivative positions, will remain at 5%, Mr. Blecher said.
Details on manager searches to implement the changes won’t be disclosed, Mr. Blecher said, noting the fund is evaluating investment management firms for potential hirings “It is an ongoing activity in terms of evaluation and bringing on new managers,” Mr. Blecher said.
