High-Yield
2023 was supposed to be a down year for foundations and endowments with a potentially recessionary environment, however, equity and bond returns came out in the green, thanks in part to strong fourth quarters, leaving investors and allocators with a more optimistic outlook for their portfolios entering 2024.
The deferred compensation plan recently made several changes to both its equity and fixed-income portfolios.
The plan also decided to not continue with its REIT manager search.
The fund considered terminating a high-yield fixed-income manager and launching a search for a replacement firm at its board meeting this week.
The college savings plan has added two underlying high-yield fixed-income funds with existing managers within its portfolio.
The plan now has two high-yield fixed-income managers on watch.
The plan hired several managers at its board meeting today, totaling more than $1 billion.
The university approved adding a new manager to its endowment to handle a high-yield bond mandate through partial redemptions of two domestic large-cap equity managers.
The search is to potentially replace an incumbent manager due to performance concerns.
The searches follow establishment of new sub-asset class targets of 11% to broad fixed-income and 3% to high-yield within its overall fixed-income target earlier this year.