Equity
The plan will receive a recommendation to restructure its equity portfolios at a meeting this week, including terminating managers.
The university approved terminating an active domestic large-cap value equity mandate and transitioning the assets to two passive index strategies alongside plans to ask the state legislature to create a $1 billion permanent endowment.
The pacing plan will commit a total of $825 million to real assets and private equity strategies.
The plan is conducting the search due to the April 2023 contract expiration of its incumbent, which was rehired in 2018, 2013 and 2008 following similar searches.
The university has promoted a senior portfolio manager to managing director following a search for the position after its previous managing director retired.
The university system is considering adding a fossil fuel-free passive index strategy to align with its recent mandate to divest its portfolios of direct and indirect investments in fossil fuels.
The public school fund selected its incumbent passive equity manager to handle approximately $343 million in October following a search from this summer due to the firm’s contract expiration.
The searches are being conducted to comply with state procurement laws.
The firms plan to form a joint venture combining their cash equities and equity research businesses to provide investment insights into the American, European and Asia Pacific equity markets as well as liquidity access and leading global trading technology.
The institution approved a new passive equity index investment with a diverse manager this summer as part of its commitment to promote diversity, equity and inclusion internally and through its selection of investment managers.