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DEFINED BENEFIT

University of Maine halves investment with EnTrustPermal for endowment, DB plan

University of Maine System, Bangor, redeemed half its assets with EnTrustPermal's hedge fund-of-funds portfolios in its $272 million managed investment pool of six endowment funds and $31 million pension fund, said Tracy E. Elliott, director of finance and controller, in an email.

According to the March 26-27 board meeting materials, the investment committee at its March 9 meeting voted to redeem $8 million of its $16 million portfolio in the endowment pool, reallocating those assets evenly between global asset allocation managers Grantham, Mayo, Van Otterloo & Co. and Wellington Management — increasing their portfolios to $22 million each — and Newton Investment Management, increasing to $21 million.

The committee also voted to redeem $1 million of EnTrustPermal's $2 million portfolio in the pension fund, reallocating evenly between Newton and Wellington, giving them more than $4 million each.

The committee also voted to fully redeem from EnTrustPermal's $6 million portfolio in the $308 million operating fund.

The reason for the redemptions, according to the meeting materials, was the “firm merger, loss of assets and potential reduced liquidity of the fund.” The merger between EnTrust Capital and Permal Group closed in May 2016.

Investment consultant NEPC assisted.