High-Yield
The university added a real estate commitment with an existing manager and fully liquidated a high-yield fixed-income strategy after a decade in the endowment.
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 incumbent manager was first hired in 2006.
The plan will commit up to $3.4 billion to the two asset classes.
Three firms will vie for the plan’s new high-yield fixed-income mandate.
Addition of emerging market fixed-income and high-yield bond strategies last month offers participants opportunities for additional yield.
The plan’s incumbent was first hired in 2016.
The plan hired all incumbents in its high-yield fixed-income and general investment consultant searches.
Plan’s decision to move all of its fixed-income assets in-house will reduce its annual fees.
Funding for the new investments will come from the plan’s existing high-yield mandate.