Asset Study/Review
The university has increased its targets to private equity and real assets at the expense of global equity and marketable alternatives to improve its portfolio’s return and risk profile.
The fund expects to receive recommendation from staff and its general investment consultant to hire extended equity 130/30 and multi-strategy hedge fund managers after approving a new asset allocation at its July board meeting.
The college increased its endowment toward private equity and venture capital and increased its long-term ranges to the asset class for a second consecutive year.
The plan’s new private markets allocation will consist of one-third private equity, one-third private debt and one-third real estate/real assets.
The searches are part of an implementation plan following approval of a new asset allocation in May.
A university based on the West Coast has completed divesting its endowment from fossil fuels after five years.
The fund will consider hiring an overlay manager to synthetically replicate its public credit benchmark and policy index after holding a second reading and considering adopting proposed changes to its investment policy statement and strategic asset allocation.
The fund received three potential asset allocation mixes from its general investment consultant last month and will further review and potentially adopt a new asset mix at its August board meeting.
The board was notified of two recent equity manager terminations and a new private equity commitment.
The organization revised its target asset allocation last week, boosting its target to fixed-income at the expense of REITs, which is expected to result in the liquidation of an exchange traded fund.