Fixed-Income
The plan’s incumbent manager was first hired in 2015 and the search is to comply with standard state procurement laws.
Institutional investors indicated that rising rates and a recession will increase the importance of fixed-income within portfolios after years of low yields.
The plan is conducting the searches to comply with state procurement law.
Plan’s investment committee selected one core fixed-income manager and one core-plus bond manager at today’s meeting.
The firm was placed on watch for underperformance.
The plan will fund the allocation from its intermediate bond manager.
Davidson Investment Advisors is acquiring the mid-Atlantic based firm, which specializes in municipal and taxable fixed-income investments, in a deal that is expected to close in the first quarter of 2023.
The trust’s incumbent consultant is on a six-month contract.
The institution added a floating rate fixed-income fund within its short-term pool and reduced its investment with a hedge fund manager to fund increased domestic equity and international equity investments within its endowment.
The trust company is looking to commit $150 million to $625 million annually to alternative assets, including alternative fixed-income, hedged equity and private debt, within its endowment.