The university is planning to conduct a strategic asset allocation study later this year after it terminated a global bond mandate and reallocated the funds to short-term bond and growth equity funds this month.
New strategic asset allocation approved last week increases targets to private equity and non-core fixed-income, including high-yield bonds and bank loans.
The fund will consider increasing its investment with an existing real estate manager this summer as its target to the asset class is significantly underweight.
The 529 plan increased its cash target in anticipation of significant cash outflows over the next two years with funding coming from reductions to fixed-income and public equities.
The university is looking to add actively managed domestic and emerging markets equity strategies in order to diversify and enhance its portfolio’s returns.