Real Assets
The plan anticipates committing up to $565 million total to the two asset classes this year.
As nonprofit investors expect market volatility to continue, with the possibility of an economic recession on the horizon, many are seeking early-stage private equity, private debt, real estate, infrastructure or hedge fund strategies to capitalize on macro trends that include a slowdown in economic growth, rising inflation, emerging technologies and demographic trends.
The plan made natural resources and real estate commitments last month and will consider a 2023 private markets pacing plan this week.
The watch status is due to a co-portfolio manager’s abrupt departure from the firm.
The consultant will advise the plan’s nearly $335 million private markets portfolio.
The plan is watching two absolute return managers due to concerns related to turnover and portfolio construction.
The plan expects to approve a recommendation in the third quarter.
The plan adopted a new asset allocation that includes a maiden target to the asset class.
The plan concludes a search that began in February.
The plan will first issue RFPs for global infrastructure and tactical asset allocation managers.