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Defined Contribution

IBM ups international equity weighting in target-date funds

International Business Machines Corp., Armonk, N.Y., has changed certain asset allocations in its IBM 401(k) Plus Plan, providing greater exposure to international equities, according to a document sent to participants.

The allocation changes affecting 10 target-date funds and four target-risk funds "may help even out the up-and-down performance swings of these funds," said the notice to participants, describing the adjustments that took place in late December and will be in effect through the first quarter of 2018.

The plan had $51.43 billion in assets of as of Sept. 30, according to Pensions & Investments data.

For each target-date fund and target-risk fund, the allocation to international equity will increase to 40% of total equity from 30% while the allocation to domestic equity will drop to 60% from 70%. This change will allow the stock portion of the funds to "better reflect the global stock market performance," the document said.

Target-date fund assets represented 9.5%, or $4.89 billion, of total assets as of Sept. 30, according to P&I data.The target-risk assets could not be immediately identified. The target-date and target-risk funds invest in the 401(k) plan's core building block investment options.

"In a parallel move, the Global Real Estate Stock Index Fund's international real estate allocations will also increase by 10 percentage points, from 70% U.S./30% international to 60% U.S./40% international," the document said. The asset size for this fund, managed by BlackRock (BLK), could not be immediately determined.

Douglas Shelton, an IBM spokesman, said the company no comment by press time.