EASTMAN Kodak is disbanding a team that manages the firm’s US$4 billion of pension investments, according to sources with knowledge of the matter.
The former giant of the photography world, which now also focuses on manufacturing advanced materials and chemicals, has begun notifying its investment managers that it is shifting oversight of the pension programme to Boston-based NEPC, said the sources, all of whom requested anonymity to discuss confidential information.
The move is being driven by the fact that the pension system is overfunded, according to the sources. The overfunded status has soared from just over US$100 million at the end of 2019 to about US$1.2 billion at the end of 2022, an amount that represents more than half of Kodak’s assets.
That came as rising interest rates pushed down the present value of its future pension liabilities for the more than 37,000 participants that receive benefits in the long-standing programme. The plans had about US$4.2 billion in assets at the end of 2022, the latest year that the company has disclosed.
Chief investment officer Thomas Mucha leads the pension team, which manages more than US$7 billion in total retirement assets supporting current and former employees, according to Mucha’s LinkedIn profile.
A representative for NEPC said the company cannot comment on clients. Eastman Kodak did not immediately respond to a request for comment. BLOOMBERG
