Texas Endowment Adding Strategic Partnerships

The Chief Investment Officer will soon implement a new partnership program for the endowment.

UTIMCO chief Britt Harris plans to recommend BlackRock and J.P. Morgan Asset Management as the Texas endowment’s first strategic partners, according to meeting materials released ahead of the fund’s December 5 board meeting. BlackRock CEO Larry Fink and J.P. Morgan asset and wealth management chief Mary Erdoes are scheduled make presentations on behalf of their respective organizations at the December meeting.

If the board approves the new partnerships, each manager will receive a $1 billion commitment. As of October 31, UTIMCO managed about $48.7 billion across endowment and operating funds.

Britt Harris to Recommend BlackRock, J.P. Morgan for UTIMCO’s First Strategic Partnerships, Institutional Investor

What assets will they manage?

If hired, BlackRock and J.P. Morgan each will manage customized portfolios with an 82% allocation to public market equity and 18% to publicly traded fixed income. Funding for the $1 billion allocation to each manager will be gradual, beginning in the first quarter 2020 and ending in the first quarter 2022, Mr. Shandley’s report said.

J.P. Morgan will actively manage U.S., global, non-U.S. developed market and emerging market equities and global fixed income. BlackRock will run both systematically managed active as well as passive U.S., non-U.S. developed markets and emerging markets equity strategies. In fixed income, 15% will be passively managed and 3% will be managed in strategic, opportunistic funds, UTIMCO’s board report showed.

UTIMCO to hire first strategic investment partners, Pensions&Investments

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Post by Marcelino Pantoja