Passive Fixed-Income
The fund approved consolidating its public credit portfolio into a passive U.S. aggregate bond index to improve operational efficiency, reduce fees and reduce active risk at its March board meeting.
The retirement system has hired four global multi-sector fixed-income and three passive equity managers in recent months.
The plan is seeking managers to handle a total of $135 million.
The fund will consider consolidating its public credit portfolio into a passive U.S. aggregate bond index to improve operational efficiency, reduce fees and reduce active risk at its board meeting this month.
The plan recently trimmed its active roster by one to fund the new hire.
The plan’s consultant began a fixed-income structure review that trimmed its active roster.
The plan replaced several of its passive mandates with Vanguard Group at yesterday’s board meeting.
The plan is seeking a passive option to diversify its fixed-income portfolio and lower fees.
The plan trimmed its fixed-income manager roster to two from three following a strategic review.
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.
