Fixed-Income
The searches follow establishment of new sub-asset class targets of 11% to broad fixed-income and 3% to high-yield within its overall fixed-income target earlier this year.
The plan replaced both its passive equity and fixed-income mandates with Vanguard Group as well as its sustainable equity mandate with Neuberger Berman in May.
The plan conducted the searches due to mandates impacted by the Energy Discrimination Act of 2022.
The university will consider adding a new manager to its endowment to handle a high-yield bond mandate through partial redemptions of two domestic large-cap equity managers.
The retirement plan has narrowed its core fixed-income search to two finalists.
The plan intends to issue RFPs for active core fixed-income and domestic small-cap value equity managers next month.
The fund revised its target asset allocation at its board meeting last week, increasing its exposure to fixed-income and private debt at the expense of real estate and global tactical asset allocation.
The plan ended a 30-year relationship with a core-plus bond manager after changes from recent meetings reported out of closed session.
The plan will further consider nine managers in a search that was launched in May.
The college savings program added active bond strategies to replace two passive strategies to provide greater flexibility in country and security selection.