Asset Study/Review
The university revised the asset allocation for the policy portfolios of two of its asset pools, increasing the allocations to global equity through a consolidation of its public real assets position.
The plan adjusted its asset allocation policy to reflect its progress toward an 11% long-term private equity target and also approved two commitments in September.
The new structure introduces a target to short-duration fixed-income and eliminates the plan’s passive core fixed-income target.
The plan recently increased its domestic equity targets by reducing its floating rate corporate loans target.
The university increased its targets to private equity and global equity at the expense of hedge funds.
The plan added up to $340 million in commitments to existing private equity and real estate manager relationships.
The plan will target 5% each to the new asset classes.
The plan approved a new asset allocation for its Core Trust Fund yesterday.
The university’s board of regents voted to join the system as a member institution last month in part because of its larger applicant pool and access to long-term investment funds.
The plan may conduct a search to replace its passive core fixed-income manager next year following an asset allocation study.