Fixed-Income
The search is being conducted as part of a new fixed-income portfolio structure.
The institution approved a new investment policy statement that bars corporate bonds, mutual funds and other types of fixed-income investments from the portfolio in December.
The plan has lined up 2026 searches for real assets, real estate and private credit managers.
The plan also disclosed $30 million in second quarter alternatives commitments at this week’s board meeting.
The plan also approved a recommendation to exit its midstream energy allocation.
The plan is looking to award $250 million to $3 billion in mandates.
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.