Domestic Equity
The university swapped domestic equity managers within its endowment and liquidity pool while also adding real assets and diversifying strategy investments at a recent investment committee meeting.
The plan’s sole active large-cap growth equity manager has underperformed its benchmark.
The retirement plan also terminated a core-plus fixed-income manager.
Historic market concentration within the Standard & Poor’s 500 Index has led to a resurgence in active domestic large-cap core equity investing among institutional investors.
The retirement system was slated to terminate a U.S. large-cap growth equity manager last month.
The retirement system last conducted a similar search in 2018.
The retirement system terminated a domestic small-cap growth equity manager last month for performance reasons.
Performance of the largest endowments generally trailed that of their smaller counterparts for the second year in a row due to a lack of exposure to the U.S. equity markets and large technology companies, according to new research from an investment consultant.
The board has hired two domestic equity managers to replace existing managers across its three investment plans.
The retirement board wrapped up domestic equity, non-U.S. equity and fixed-income searches at its board meeting this week.