Fixed-Income
The plan is looking for non-core fixed-income strategies enhance its portfolio.
The plan may conduct a search to replace its passive core fixed-income manager next year following an asset allocation study.
The plan added the short-term fixed-income mandate in a “defensive move” recommended by its consultant.
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.