Domestic Equity
Historic market concentration within the Standard & Poor’s 500 Index has led to a resurgence in active domestic large-cap core equity investing among institutional investors.
The retirement system was slated to terminate a U.S. large-cap growth equity manager last month.
The retirement system last conducted a similar search in 2018.
The retirement system terminated a domestic small-cap growth equity manager last month for performance reasons.
Performance of the largest endowments generally trailed that of their smaller counterparts for the second year in a row due to a lack of exposure to the U.S. equity markets and large technology companies, according to new research from an investment consultant.
The board has hired two domestic equity managers to replace existing managers across its three investment plans.
The retirement board wrapped up domestic equity, non-U.S. equity and fixed-income searches at its board meeting this week.
The plan has placed a domestic small-cap value equity manager on watch due to consistent underperformance.
The retirement system last conducted a similar search in 2018.
Investors and allocators approached 2024 with an optimistic outlook, anticipating that inflation had peaked and would continue to reverse course, and they were rewarded as the Federal Reserve cut rates and equity and bond returns ended up firmly in the green. The year ahead, however, leaves investors with questions on how to navigate a market where valuations appear full and few assets appear cheap.