Equity
The commitment is part of the plan’s new portfolio structure, which introduced a 5%, or roughly $500 million, private debt target allocation in November.
The plan replaced its domestic mid-cap growth equity manager due to underperformance.
The plans added a sustainable equity manager to their lineup in October after initially receiving an ESG/socially responsible product analysis search book in April.
The pension plan liquidated its approximately $210 million domestic small- to mid-cap growth equity and made commitments totaling $120.5 million in November.
The asset allocation changes resulted in several manager hires and terminations at the retirement system’s November meeting.
The co-founder of a small-cap growth specialist firm died last month due to complications from a previous illness.
2023 was supposed to be a down year for foundations and endowments with a potentially recessionary environment, however, equity and bond returns came out in the green, thanks in part to strong fourth quarters, leaving investors and allocators with a more optimistic outlook for their portfolios entering 2024.
The institution revised its strategic asset allocation last year, increasing its allocation toward growth assets like public equity and private equity.
The manager was placed on watch last year for underperformance.
The pension plan will consider potentially replacing its international small-cap core equity manager due to underperformance.