High-Yield
The plan also terminated a high-yield fixed-income manager in the first quarter.
The trust fund’s general investment consultant recommended the expansion to diversify its public credit portfolio into other credit instruments from exclusively bank loans.
A state trust fund is considering a recommendation from its consultant to diversify its public credit portfolio in one of its funds.
The plan is seeking two to four managers to evenly split an approximately $1 billion allocation.
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 has lined up 2026 searches for real assets, real estate and private credit managers.
The pension plan also made a follow-on infrastructure commitment.
The university also liquidated fixed-income and equity strategies to fund endowment spending and university advancement payouts.
The plan tapped public market credit consultant Mercer earlier this year to conduct the searches.
The pension plan also made credit and infrastructure commitments totaling $130 million last month.
