Kimberly-Clark Corp., Dallas, will increase its fixed-income allocation by five percentage points to 75% in 2015.
The shift comes after the company increased its target fixed-income allocation to 70% in 2014 from 60% in 2013. The remaining target allocation of 25% is in equity, down from 30% last year.
The company expects to contribute up to $100 million to its defined benefit plans in 2015, according to its 10-K, filed Wednesday. It contributed $185 million in 2014.
DB assets of $5.9 billion were up 6.2% in 2014, while the funding ratio dipped to 86.2% as of Dec. 31 from 90.3% a year earlier. The discount rate used to measure pension liabilities during the year dropped 83 basis points to 3.83%.
The firm has also been gradually lowering its expected rate of return. In 2013, the expected return on assets was 6.26%. It was 5.98% in 2014 and for 2015, 5.21%.
The asset allocation as of Dec. 31 was 72.2% fixed income, 23.6% equities, 3.7% cash and 0.5% other.