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 Alternative Asset Allocation in A Shiting Market 
Pension Fund Investment Guide
 
YOU READ IT HERE FIRST!!! 
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YOUR SOURCE FOR CORPORATE PLAN SEARCHES 
March  2 3,  2 0 0 7
MERGED OIL COS. PLO T RE VIE W
 A na da r k o Petro leum Corp.
intends to merge itspension plan later this  year  with that of  
K err-McGee Corp.
,  which it acq uired in  A ugust.Bet ween them, the plans ha ve $1.1  billion in assets,three consultants and 30 mandates  with assetmanagers. 
 Jerem y  Smit h
, assistant treasurer f orcorporate finance, said he intends to re vie w  whichconsultant or consultants the f unds should use bef ore  year-end and then re visit the assetallocation. A nadark o’s plan has appro ximatel y $63 7 millionand is ad vised  b y 
Summit Stra tegies Group
and
Ca  l la n  A ssocia tes
. Its asset allocation is 65% eq uit y,
March 9, 2007
GE EYES ASIAN HEDGE FUNDS,CONVERTIBLE ARB
General Electric
’s $53 billion pension fund isconsidering investing in Asian hedge funds andconvertible arbitrage strategies.
 James Mitchell
,managing director, alternative investments at
GE Asset Management
, which manages the pension’sassets, is discussing a $100 million allocation to Asian hedge funds, he told delegates at
Institutional Investor Conferences
’
Hedge Fund Business Symposium
in New York on Feb. 26.GE is reviewing several ways to access Asia. Oneidea is to select three hedge funds based in Asia andanother three managers located outside Asia butinvesting in the region, Mitchell said. Looking at
F ebr uar y  2 3 , 2 0 0 7 
UNIT ED T EC HNOLOGIES  T OIMP LEMENT  P ORT ABLE ALP HA LDI
U nit ed T echnolog ies Cor  p.
is pr epar ing  t o launcha por t able alpha liabilit y -dr iv en inv est ment st r at eg y  but  has y et  t o decide w hat  it s t hir d “alphaeng ine” w ill be. T he st r at eg y  w ill be implement edin t hr ee st ag es using  long -dur at ion bond sw aps;each st ep w ill incr ease t he $16  billion definedbenefit  scheme’s ex posur e t o long  bonds by  5%.T he t iming  w ill be oppor t unist ic, depending  onint er est  r at e mov ement s, said 
Chr ist o pher Pa olino
, senior  analy st , pension inv est ment s,speak ing  at  
F ina ncia l R esea r ch  A ssocia t es
’  A lpha-Bet s conf er ence in N ew  Y or k  on Feb. 12. U T C is
Apr il 2 0 , 2 0 0 7 Equit y  C ut  By  Half 
BOEING T O INC REAS E BONDS ,ALT ERNAT IV ES 
Boeing  Co.
is planning  t o incr ease it s ex posur est o fix ed income, r eal est at e, pr iv at e equit y  andot her  alt er nat iv es at  t he ex pense of  publicequit y . T he mov es f ollow  an asset  st udy  last  y ear ( MML, 6 / 16 ) and w ill t ak e sev er al y ear s t oimplement , said 
T odd Blecher 
, spok esman.Boeing ’s $46 .2 billion plan is mak ing  t hechang es t o r educe v olat ilit y  r elat iv e t o it sliabilit ies, impr ov e r et ur ns and div er sif y .Boeing  int ends t o incr ease it s bondallocat ion t o 45% f r om 37 % and w ill leng t hen
 
May 4, 2007
AMERICAN AIRLINES TO COMMIT$300M TO PVT. EQUITY
 American Beacon Advisors
, which manages
 American Airlines
’ $8.6 billion pension plan,intends to invest $300 million in private equity to reach its $800 million commitment level.
BillQuinn
, director of investments, said timing willdepend on how fast incumbent managersdistribute cash as their investments mature. America Beacon tends to make five or sixprivate equity commitments per year, consistingof three or four incumbent manager renewals andtwo new relationships.
Lars Pace
is the fund’sprivate equity specialist.
Ma y 1 8,  2 0 0 7
LINCOLN FINANCIAL CONSIDERSAL TERNA TI VES, LDI
 Linco ln Fina ncia  l Group
,  which  will f reeze itsdefined  benefit pension plan at  year-end, isconsidering in vesting in hedge f unds and pri vateeq uit y, as  well as lia bilit y-dri ven in vestments. 
R ise Ta  y  lor
,  v.p. of  finance, said  whether the $1  billionplan pursues these mo ves  will depend on theresults of  an asset/lia bilit y modeling stud y,  which
Buc k  Consu lta nts
 will complete in  Jul y. Shee xpects to hire ne w managers af ter the stud y,  but wasn’t sure f or  which asset classes. Ta ylor said  Lincoln Financial conducts  A  LMstudies regularl y and this one  will anal yze  whether
 
2008 Pension Fund Investment Guide
3
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able
 
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Sta 
 
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 A Publication o Institutional Investor, Inc.© Copyright 2007. Institutional Investor, Inc. All rights reserved. New York Publishing oces:
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www.iinews.comCopyright notice. No part o this publication may be copies, photocopiedor duplicated in any orm or by any means without Institutional Investors’prior written consent. Copying o this publication is in violation o theFederal Copyright Law (17 USC 101 et seq.). Violators may be subject tocriminal penalties as well as liability or substantial monetary damages,including statutory damages up to $100,000 per inringement, costs andattorney’s ees.The inormation contained herein is accurate to the best o the publisher’sknowledge; however, the publisher can accept no responsibility or theaccuracy or completeness o such inormation or or loss or damage caused by any use thereo.
Manager Round-Up 5
Preparing the Alternatives Portfolio for Down Shift in the Market
IINews speaks with our alternative investment experts about positioning the pensionportolio (especially the catch all category o alternatives) or a more sober marketperiod.
The Long and Short o It 11
Two established 130/30 managers explain the key concepts and the risk/return proleo the 130/30 approach to investing. In short, the 130/30 strategies took a heat in therecent volatility, but interest continues.
Risk Spotlight 16
Brad Belt talks about lessons learned rom his time at the Pension Benets GuarantyCorp, and risk actors or the pension investors that may become more critical in achanging market.
Consultants Corner 20
End of Bull Run Ushers in Opportunity for Asset Redeployment
II News speaks with two o the main pension consulting rms, Wilshire Associates andEvaluation Associates, about issues related to alternative investment allocations.
Alternative Asset Class in Focus
Distress Investing 24
Over the next six to 18 months, there will be opportunity for institutions interested in
pursuing distressed investments to place assets with managers in that market.
Asset Allocator Outlook 29
 James Perry, San Bernardino County Retirement System, talks about his thoughts onthe current market, and his outlook or various alternative assets.
Legacy Issues 32
Arkansas System Shines Light On ConservativePensions’ Dilemma – And Offers a Path Forward 
Paul Doane, Arkansas Teacher Retirement System, explains how the ATRS plans to
shed its old-fashioned legacies but still produce alpha in a prudent way all with little or
no investment in alternatives.
Tables 36
Top Mandates by Asset Class
— Fund name, manager & mandate amount 36
US Commodities Managers — 
Manager, accounts & assets gained 38
US Venture Capital Managers — 
Manager, accounts & assets gained 38
US Hedge Fund Managers — 
Manager, accounts & assets gained 39
US Private Equity Managers — 
Manager, accounts & assets gained 42
US Real Estate Managers — 
Manager, accounts & assets gained 47
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