Ford Motor embarked on an ambitious program in 2007 to reduce the risks posed by its defined-benefit pension plan by shifting assets out of stocks and into bonds.
In more than 50 years of operating the plan, Ford had focused on maximizing returns and invested mostly in equities.
"Our history had been to manage the assets almost independently of the liabilities," says Kathleen Gallagher, Ford's director of asset management. "The events of recent years really required us to reconsider. The combination of funding regulations and the challenges facing the company made us much more intolerant of swings in returns and much more sensitive to how the assets were going to behave relative to the liabilities."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
