Regions Bank 2012 Annual Report Download - page 198

The pension plan’s investment strategy is continuing to shift from focusing on maximizing asset returns to
minimizing funding ratio volatility, with an increase to the allocation to bonds. The target asset allocation is 46
percent equities, 32 percent fixed income securities and 22 percent in all other types of investments. Equity
securities include investments in large and small/mid cap companies primarily located in the United States as
well as investments in international equities. Fixed income securities include investments in corporate and
government bonds, asset-backed securities and any other fixed income investments as allowed by respective
prospectuses and other offering documents. Other types of investments may include hedge funds, real estate
funds, and private equity funds that follow several different strategies. Plan assets are highly diversified with
respect to asset class, security and manager. Investment risk is controlled with plan assets rebalancing to target
allocations on a periodic basis and continual monitoring of investment managers’ performance relative to the
investment guidelines established with each investment manager.
The Regions’ pension plan has a portion of its investments in Regions’ common stock. At December 31,
2012, the number of shares held by the plan was 2,855,618, which represents approximately one percent of the
plan assets for a total market value of approximately $20 million.
182