Domestic Equity
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 incumbent domestic small-cap growth equity manager had been on watch due to personnel changes and underperformance.
The retirement system terminated a domestic large-cap core equity manager earlier this month.
The decision followed finalist interviews with two firms at last month’s board meeting.
The firm launched an actively managed, high-conviction equity portfolio as it recognized the need for a diversified mix of energy sources to meet rising demand.
The firm has underperformed its benchmark for the quarter as well as the one- and three-year time periods.
The plan’s initial priority will be to conduct a global core/value equity strategy search to compare with an existing investment manager.
The plan will consider replacing a domestic large-cap equity fund on watch status and approving a new asset allocation for its portfolio at its December board meeting.
The retirement system will interview three finalists at its February investment committee meeting.
The pension system hired a new manager after closed session deliberations at a meeting this week.