Iowa Board of Regents, Urbandale, hired Neuberger Berman to manage $35 million in high-yield fixed income for the University of Iowa and Iowa State University tax-exempt operating and longer-term funds, said Patrice M. Sayre, chief business officer, in an e-mail.
The universities' combined funds total $1.3 billion.
Funding will come from Vanguard Group, which will manage about $60 million in active high-yield bonds for the funds after the reallocations.
“The addition of ( Neuberger Berman) provides for greater diversification to the high-yield allocation,” said a board audit/compliance and investment committee report. “Further, it potentially reduces active risk (tracking error) because the Vanguard high-yield (portfolio has) certain exposure biases.”
The hiring was the result of a search conducted by Wilshire Associates, the board's investment consultant, which screened candidates to recommend to the board. No RFP was issued.