Fixed-Income
The recommended core bond hire represents “one of the final steps in realizing the restructuring of KCERA’s overall fixed income portfolio” from 2023.
The plan launched a search last year following the creation of a new 11% sub-asset class target.
The university also liquidated fixed-income and equity strategies to fund endowment spending and university advancement payouts.
The university has added to its investments with a domestic large-cap equity and multi-strategy hedge fund manager since September.
The retirement system will seek a core fixed-income manager to handle 11% of its fixed-income portfolio.
The plan invested $185 million in a fixed-income strategy last month.
The plan’s investment committee and general investment consultant recommended a manager change following a search presentation earlier in the year.
The retirement system will conduct searches for domestic and global fixed-income and domestic and emerging markets equity managers.
The credit group of a global alternatives manager is acquiring the entire outstanding share capital of a systematic fixed-income manager in a deal expected to close in the first quarter.
The plan is searching for domestic and international equity, core fixed-income and core real estate managers.