Compared with the Defense Department's budget — some $550 billion in base spending in 2011 — pension allocations to contractors may not seem like much.
The move, to be undertaken this spring, will reduce the pension fund allocation in domestic equities to 45percentt from 50percentt.
New research from Greenwich Associates, a research firm, shows that, despite all the talk, European pension funds' allocation to hedge funds has stayed flat.
Pension fund allocations are another cash flow variable, but I discount all this.
They advise pensions on allocation (stocks versus bonds versus commodities) and protect them from overcharging and chicanery.
Pension fund allocations to hedge funds increased 4% year-over-year, with the top 10 biggest institutional investors increasing their exposure to the asset class by 10%, or $183 billion.
It also raises ethical concerns due to a lack of transparency and the potential for "pay to play" schemes, in which placement agents offer financial incentives, such as campaign contributions, to the people responsible for making decisions about pension fund allocations.
Should the funding status of the pension impact the asset allocation process?
Second, Mr. Craig admitted that he had not determined whether Enersys's interest included taking on the environmental liabilities, pension liabilities and an allocation of shared services with the industrial division.
This can be achieved through pension plans, adjusting asset allocation, or a laddered bond portfolio.
