US - GM motors is to move 20% of its pension fund assets from stocks to bonds in an effort to protect a US$17.1bn surplus.
Global bonds will now make up 52% of investments with 29% in global equity, 8% in real estate and 11% in alternative investments.
GM chief financial officer Fritz Henderson said: “What this is intended to do is reduce the expected volatility of asset returns in the plan’s funded status, and frankly lower the probability of any future [funding] requirements.”
Returns of 15% on GM’s assets in 2006 were well ahead of general market performance and an improvement on 13% in 2005.
Return expectations have been lowered to 8.5% for 2007 as a result of the asset re-allocation.