IP » Topics » Investment Policy / Strategy

This excerpt taken from the IP 8-K filed May 13, 2009.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases with increases in the pension obligation. The use of these swap agree-


 

86


ments was discontinued in 2008 due to market conditions. Investment plans for 2009 are still being evaluated. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2008 and 2007, and target allocations by asset category are as follows:

 

           

Percentage of

Plan Assets at
December 31,

Asset Category   

Target

Allocations

   2008    2007

Equity securities

   40% - 51%    39%    59%

Debt securities

   30% - 40%    39%    31%

Real estate

   7% - 13%    10%    7%

Other

   9% - 18%    12%    3%

Total

        100%    100%

There were no International Paper shares included in plan assets for 2008 and 2007.

At December 31, 2008, projected future pension benefit payments, excluding any termination benefits, are as follows:

 

In millions      

2009

   $ 579

2010

     578

2011

     584

2012

     593

2013

     604

2014 – 2018

     3,213
This excerpt taken from the IP 10-K filed Feb 26, 2009.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases with increases in the pension obligation. The use of these swap agree-


 

86


Table of Contents

ments was discontinued in 2008 due to market conditions. Investment plans for 2009 are still being evaluated. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2008 and 2007, and target allocations by asset category are as follows:

 

           

Percentage of

Plan Assets at
December 31,

Asset Category   

Target

Allocations

   2008    2007

Equity securities

   40% - 51%    39%    59%

Debt securities

   30% - 40%    39%    31%

Real estate

   7% - 13%    10%    7%

Other

   9% - 18%    12%    3%

Total

        100%    100%

There were no International Paper shares included in plan assets for 2008 and 2007.

At December 31, 2008, projected future pension benefit payments, excluding any termination benefits, are as follows:

 

In millions      

2009

   $ 579

2010

     578

2011

     584

2012

     593

2013

     604

2014 – 2018

     3,213
This excerpt taken from the IP 8-K filed May 9, 2008.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases directionally with increases in the pension obligation. The current portfolio is hedged at approximately 40% of the plan’s projected benefit obligation, with plans to increase this ratio to 50% by no later than the end of 2008. This new strategy is not expected to alter the long-term rate of return on plan assets. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2007 and 2006, and target allocations by asset category are as follows:

 

            Percentage of
Plan Assets
at December 31,
Asset Category   

Target

Allocations

   2007    2006

Equity securities

   52% - 63%    59%    57%

Debt securities

   26% - 34%    31%    34%

Real estate

   5% - 10%    7%    7%

Other

   2% -   8%    3%    2%

Total

        100%    100%

 

There were no International Paper shares included in plan assets for 2007 and 2006.

At December 31, 2007, projected future pension benefit payments are as follows:

 

In millions      

2008

   $ 570

2009

     563

2010

     565

2011

     570

2012

     579

2013 - 2017

     3,041
This excerpt taken from the IP 10-K filed Feb 29, 2008.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases directionally with increases in the pension obligation. The current portfolio is hedged at approximately 40% of the plan’s projected benefit obligation, with plans to increase this ratio to 50% by no later than the end of 2008. This new strategy is not expected to alter the long-term rate of return on plan assets. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2007 and 2006, and target allocations by asset category are as follows:

 

            Percentage of
Plan Assets
at December 31,
Asset Category   

Target

Allocations

   2007    2006

Equity securities

   52% - 63%    59%    57%

Debt securities

   26% - 34%    31%    34%

Real estate

   5% - 10%    7%    7%

Other

   2% -   8%    3%    2%

Total

        100%    100%

 

There were no International Paper shares included in plan assets for 2007 and 2006.

At December 31, 2007, projected future pension benefit payments are as follows:

 

In millions      

2008

   $ 570

2009

     563

2010

     565

2011

     570

2012

     579

2013 - 2017

     3,041
This excerpt taken from the IP 8-K filed Aug 14, 2007.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases directionally with increases in the pension obligation. The current portfolio is hedged at approximately 35% of the plan’s liability, with plans to increase this ratio to 50% by no later than the end of 2008. This new strategy is not expected to alter the long-term rate of return on plan assets. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2006 and 2005, and target allocations by asset category are as follows:

 

             Percentage of
Plan Assets
at December 31,
 
Asset Category    Target
Allocations
    2006     2005  

Equity securities

   52 % - 63%   57 %   61 %

Debt securities

   26 % - 34%   34 %   28 %

Real estate

   5 % - 10%   7 %   9 %

Other

   2 % - 8%   2 %   2 %

Total

         100 %   100 %

 

67


At December 31, 2006, plan assets included 12,800 shares of International Paper common stock with a market value of approximately $430,000. No plan assets were invested in International Paper common stock at December 31, 2005.

At December 31, 2006, projected future pension benefit payments are as follows:

 

In millions     

2007

  $ 547

2008

    528

2009

    533

2010

    543

2011

    556

2012 - 2016

    3,018
This excerpt taken from the IP 10-K filed Feb 28, 2007.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. In 2006, International Paper modified its investment policy to use interest rate swap agreements to extend the duration of the Plan’s bond portfolio to better match the duration of the pension obligation, thus helping to stabilize the ratio of assets to liabilities when interest rates change. Thus, when interest rates fall, the value of the swap agreements increases directionally with increases in the pension obligation. The current portfolio is hedged at approximately 35% of the plan’s liability, with plans to increase this ratio to 50% by no later than the end of 2008. This new strategy is not expected to alter the long-term rate of return on plan assets. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2006 and 2005, and target allocations by asset category are as follows:

 

             Percentage of
Plan Assets
at December 31,
 
Asset Category    Target
Allocations
    2006     2005  

Equity securities

   52 % - 63%   57 %   61 %

Debt securities

   26 % - 34%   34 %   28 %

Real estate

   5 % - 10%   7 %   9 %

Other

   2 % - 8%   2 %   2 %

Total

         100 %   100 %

 

80


At December 31, 2006, plan assets included 12,800 shares of International Paper common stock with a market value of approximately $430,000. No plan assets were invested in International Paper common stock at December 31, 2005.

At December 31, 2006, projected future pension benefit payments are as follows:

 

In millions     

2007

  $ 547

2008

    528

2009

    533

2010

    543

2011

    556

2012 - 2016

    3,018
This excerpt taken from the IP 8-K filed Nov 28, 2006.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. The investment policy permits the use of swaps, options, forwards and futures contracts. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2005 and 2004, and target allocations by asset category are as follows:

 

    

Target
Allocations

   Percentage of
Plan Assets
at
December 31,
 

Asset Category

      2005     2004  

Equity securities

   52% – 63%    61 %   62 %

Debt securities

   26% – 34%    28 %   27 %

Real estate

   5% – 10%    9 %   8 %

Other

   2% – 8%    2 %   3 %
               

Total

      100 %   100 %
               

No plan assets were invested in International Paper common stock at December 31, 2005 or 2004.

At December 31, 2005, projected future pension benefit payments are as follows:

 

In millions

    

2006

   $ 525

2007

     515

2008

     517

2009

     523

2010

     536

2011 – 2015

     2,932
This excerpt taken from the IP 8-K filed Aug 14, 2006.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. The investment policy permits the use of swaps, options, forwards and futures contracts. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2005 and 2004, and target allocations by asset category are as follows:

 

           Percentage of
Plan Assets at
December 31,
 
Asset Category   Target
Allocations
   2005     2004  

Equity securities

  52% – 63%    61 %   62 %

Debt securities

  26% – 34%    28 %   27 %

Real estate

  5% – 10%    9 %   8 %

Other

  2% –  8%    2 %   3 %
   

Total

     100 %   100 %
   

No plan assets were invested in International Paper common stock at December 31, 2005 or 2004.

At December 31, 2005, projected future pension benefit payments are as follows:

 

In millions     

2006

  $525

2007

  515

2008

  517

2009

  523

2010

  536

2011 – 2015

  2,932
This excerpt taken from the IP 10-K filed Mar 7, 2006.

Investment Policy / Strategy

Plan assets are invested to maximize returns within prudent levels of risk. The target allocations by asset class are summarized in the following table. Investments are diversified across classes and within each class to minimize risk. The investment policy permits the use of swaps, options, forwards and futures contracts. Periodic reviews are made of investment policy objectives and investment manager performance.

International Paper’s pension plan asset allocations by type of fund at December 31, 2005 and 2004, and target allocations by asset category are as follows:

 

           Percentage of
Plan Assets at
December 31,
 
Asset Category   Target
Allocations
   2005     2004  

Equity securities

  52% – 63%    61 %   62 %

Debt securities

  26% – 34%    28 %   27 %

Real estate

  5% – 10%    9 %   8 %

Other

  2% –  8%    2 %   3 %
   

Total

     100 %   100 %
   

No plan assets were invested in International Paper common stock at December 31, 2005 or 2004.

At December 31, 2005, projected future pension benefit payments are as follows:

 

In millions     

2006

  $525

2007

  515

2008

  517

2009

  523

2010

  536

2011 – 2015

  2,932
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