Fixed-Income
The plan increased its fixed-rate debt target by reducing its public equity target last month.
The university added a passive, long-term fixed-income strategy within its endowment in the fourth quarter in response to the rise in bond rates.
The search follows the departure of an investment associate that left at the beginning of the year to join a West Coast endowment.
The district expects to issue an intent to award the week of June 30.
The plan is searching for two emerging market debt managers and one high-yield fixed-income manager.
The contract of the plan’s incumbent high-yield fixed-income manager will expire this year.
Plan continues working toward executing a transition of assets away from the state fund.
The changes will harmonize the investment grade fixed-income portfolios between the board’s three investment plans.
The new policy will help the plan achieve an expected return of 7.25% over the next 10 years.
The plan removed two hedge fund investments totaling $40.8 million from its portfolio this week.