Intel has hired a new manager to achieve target date series for global diversified funds.
Intel Corporation is the powerhouse of the information technology sector. Intel Corp. has decided to opt for external management that will be for two big investments that is likely to cater to all alternative investments through their $14.85 billion contribution plans. The officials at Intel have now hired Mr. Aliance Bernstein who will be the investment manager for Intel’s target date series. The company currently has $3.63 billion in terms of assets along with a $5.82 billion worth of diversified fund.
It is known that the company is not only the largest but the highest valued semi conductor chip manufacturer as well. And it has made its position stable in the market. The company recently hired a manager for target date and global funds and it is now focusing on its latest target date series which is also said to be the largest component of the company’s new plan. Reportedly, Intel’s new plan is worth at $8.19 billion. Furthermore, $6.66 billion profit sharing plan basically comes from the global diversified funds.
It is known that the semiconductor chip manufacturer is the most aggressive users of ‘alternatives among DC plans’. So far, the company has managed both of these options internally. According to a source, the company is “setting the target-date glidepath and hiring various firms to manage assets in the target-date funds and the global diversified fund. DC consultants say Intel's switching to third-party management — a so-called 3(38) fiduciary — from its internal management for the custom target-date series is part of a growing strategy among large DC plans.”
Furthermore, the alternate investment percentage is also in the target date option which will vary according to the glidepath. Analysts believed that the target allocated to it in the global diversified fund in 50 percent.
The options of target date and global diversified fund include real assets, hedge funds, and treasury inflation which are protected securities into the investment mix. Also, the alternative of this fund is private equity.
According to Stuart Odell who is an assistant treasurer and retirement investment stated “Hiring Alliance Bernstein represents an opportunity to enhance our investment strategy. Alliance Bernstein is a large asset manager with a lot of experience. We want them to bring their investment ideas to our portfolio.”
It is believed that the company will continue to choose the managers for five core asset classes such as domestic large and small cap equity, stable value, global bonds, and international equity. And all of these classes will be the building blocks of the company’s target date series in the coming times.
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