Domestic Equity
The retirement board wrapped up domestic equity, non-U.S. equity and fixed-income searches at its board meeting this week.
The plan has placed a domestic small-cap value equity manager on watch due to consistent underperformance.
The retirement system last conducted a similar search in 2018.
Investors and allocators approached 2024 with an optimistic outlook, anticipating that inflation had peaked and would continue to reverse course, and they were rewarded as the Federal Reserve cut rates and equity and bond returns ended up firmly in the green. The year ahead, however, leaves investors with questions on how to navigate a market where valuations appear full and few assets appear cheap.
The deferred compensation plan terminated two domestic equity managers and an intermediate core-plus bond manager in the third quarter.
The plans placed their incumbent domestic mid-cap equity manager on watch in September.
The plans hired a new core-plus fixed-income manager in the third quarter.
The farmland manager will handle mandates totaling $28 million for two pension plans.
The retirement system transitioned its passive domestic equity mandates with BlackRock to active management in the third quarter.
The search is being conducted to replace the plan’s incumbent global growth equity manager, which has been on watch due to underperformance.