Fixed-Income
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 organization selected the final three managers in its search for debt and equity funds that align with its financial return objectives and impact priorities.
The search is being conducted as part of a new fixed-income portfolio structure.
The institution approved a new investment policy statement that bars corporate bonds, mutual funds and other types of fixed-income investments from the portfolio in December.
The plan has lined up 2026 searches for real assets, real estate and private credit managers.
The plan also disclosed $30 million in second quarter alternatives commitments at this week’s board meeting.
The plan also approved a recommendation to exit its midstream energy allocation.
The plan is looking to award $250 million to $3 billion in mandates.
The recommended core bond hire represents “one of the final steps in realizing the restructuring of KCERA’s overall fixed income portfolio” from 2023.
The plan launched a search last year following the creation of a new 11% sub-asset class target.