Core-Plus
The deferred compensation plan will also consider replacing its multi-strategy real estate manager this week.
The health care trust hired an additional core-plus fixed-income manager while swapping out another at this week’s board meeting.
Nonprofit investors and allocators are tempering expectations for their portfolios in 2026 as they prepare for more moderate returns resulting from increased volatility and heightened valuations along with persistent macroeconomic and geopolitical uncertainties.
The plan also approved a recommendation to exit its midstream energy allocation.
The hire completes a review of the real assets portfolio that will now see it split evenly between one core-plus and two core managers.
The pension plan will conduct a search for one or more core/core-plus real estate managers as part of a newly approved real assets fiscal year 2026 investment plan.
The change comes as part of an overall review of the real assets portfolio by its general investment consultant.
The retirement plan will hear from six total firms across core and core-plus strategies in the coming months.
The retirement fund’s investment committee also restructured its domestic equity portfolio to help meet impending sustainability goals.
The plan reviewed proposed allocation mixes that add a dedicated high-yield bond target while significantly increasing intermediate grade core-plus fixed-income, both of which would result in searches for new managers.