Fixed-Income
The plan increased its private credit target and added a commitment within the non-core fixed-income portfolio yesterday.
The university will consider adding a passive domestic large-cap value strategy to provide a more balanced approach to its equity portfolio and a private debt manager as it looks to build out its allocation to the asset class.
The increased commitment will provide the plan with “an equal-weighted exposure” between its U.S. and European private credit managers and the termination will reduce volatility.
The plan committed $20 million to a new opportunistic credit manager.
The plan will hire a new high-yield fixed-income manager this fall.
The plan is likely to introduce a 5% allocation to the new strategy.
Authority is searching for a firm to manage $386 million in fixed-income assets.
The incumbent manager was first hired in 2006.
Three firms will vie for the plan’s new high-yield fixed-income mandate.
The plan last retained its general investment consultant in 2017 and has worked with its incumbent record keeper for 10 years.