Asset Study/Review
Plan is seeking private debt managers to each handle an up to $100 million mandate and approved new asset allocation policies last week.
New strategic asset allocation approved last week increases targets to private equity and non-core fixed-income, including high-yield bonds and bank loans.
The plan is allowed to invest up to 7.5% of total assets into the new asset class.
The fund will consider increasing its investment with an existing real estate manager this summer as its target to the asset class is significantly underweight.
The institution will review the asset allocation for its endowment this week and consider increasing its private equity target.
The 529 plan increased its cash target in anticipation of significant cash outflows over the next two years with funding coming from reductions to fixed-income and public equities.
The university is looking to add actively managed domestic and emerging markets equity strategies in order to diversify and enhance its portfolio’s returns.
Target asset allocation changes under consideration for the system’s largest pool would ensure the portfolio is prudently allocated to withstand further disruptions to the market and economy.
The university will consider committing additional capital to an existing real estate strategy as the firm eyes a more robust opportunity set than anticipated and prefers to increase the size of the fund rather than raise a new one.
The plan will discuss adding a 3% private debt target at its board meeting on Friday.
