Passive Equity
The university approved adding a passive domestic large-cap value strategy to provide a more balanced approach to its equity portfolio and its first private debt manager as it looks to build out its allocation to the asset class.
The plan will revisit a recommendation to terminate its active domestic large-cap growth mandate and move the assets to a passive account.
The fund is seeking a firm to provide passive equity exposure for a portfolio with minimal tracking error due to the contract expiration of its current provider.
Termination shifts large-cap growth assets to a passive allocation in anticipation of investing in mid-cap equities for the first time.
The board terminated three managers to “harmonize” the equity portfolios between its plans.
The plan hired a passive large-cap value equity manager as it looked to rebalance its large-cap exposure.
The investment committee approved selections after interviewing three finalists today.
A total of three firms will be interviewed at a special board meeting this week.
Plan received only one response to an RFP issued last month.
Plan added a $15 million private equity commitment at last week’s board meeting.
