Intel Corp., Santa Clara, Calif., hired AllianceBernstein as the investment manager for two large portfolios in the company's retirement plans — a custom target-date series and a global diversified fund that contains many alternatives.
Each of the portfolios had been managed internally. AllianceBernstein took over the investment management duties April 30. Intel had issued an RFP last year, and 10 investment managers responded.
The goal in hiring AllianceBernstein is “to enhance the existing asset allocation and daily management of the portfolios through a more dynamic and operationally efficient asset allocation and rebalance process,” Stuart Odell, assistant treasurer, retirement investments, said in an interview.
Another goal is to “improve the participant experience around communications and education of these portfolios,” Mr. Odell added.
The global diversified fund had $5.82 billion assets, or 87% of the assets of the $6.66 billion Intel Retirement Contribution Plan, a profit-sharing plan. The target-date series accounted for $320 million, or 5% of the profit-sharing plan.
The global diversified fund's total asset allocation consists of 21.5% international equity, 20% each hedge funds and private equity, 18.5% domestic equity, 10% global bonds and 5% each liquid real assets and Treasury inflation-protected securities.
The custom target-date series accounted for $3.63 billion, or 44.3% of the $8.19 billion Intel 401(k) Savings Plan's assets as of March 31. The global diversified fund represented $32 million in the 401(k) plan.
