Passive Fixed-Income
The two incumbents were the only firms that submitted proposals.
The university is considering adding a U.S. Treasury bond strategy to two of its portfolios after creating a maiden 5% target to Treasuries in both portfolios last quarter.
The plan introduced a 5% target to private debt and restructured its U.S. fixed-income and both U.S. and non-U.S. equity portfolios last week.
The recommended changes include introducing a 5% target to private debt and restructuring the plan’s U.S. fixed-income and both U.S. and non-U.S. equity portfolios.
The plan is seeking active core and core-plus bond managers to handle roughly $125 million each.
The plan replaced its passive TIPS mandate with BlackRock and committed to a new credit manager 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 changes will harmonize the investment grade fixed-income portfolios between the board’s three investment plans.
The search is being conducted to enhance returns and minimize fees.
The plan conducted a similar search in 2021 that did result in any hires.