Temple University, Philadelphia, is taking a serious look at its investment policy and could reorganize investment of its endowment and operating fund assets, most of which are managed internally, said Laurence Connely, assistant treasurer.
The university's investment committee handles $414 million of the $514 million in endowment and operating assets in-house. GMG/Seneca Capital manages bonds, The Common Fund handles a balanced portfolio for both funds and Mellon Capital manages bonds for the operating fund. Mr. Connely said it's expected more of the money will be externally managed, but it is still too early to say.
Mercer is conducting the investment policy study, which should be finished in early June.
University & Community College System of Nevada, Reno, is reviewing its bond portfolio and looking at creating an alternative investment allocation for its $175 million endowment fund. The $40 million fixed-income portfolio has been a ``drag on performance,'' said Tim Ortez, director of banking and investments. Sanford C. Bernstein is the fund's domestic bond manager and The Common Fund handles global bonds.
Trustees also are considering investing in REITs and hedge funds to increase returns. The system is allowed to invest up to $10 million in alternative investments, but has chosen not to invest in the area so far. The outcome of the review is expected at the May 21 board meeting. Cambridge Associates is assisting.
Arrow Partners, a third-party marketing firm, signed up its second client, Holl International, a manager of concentrated international equity portfolios. Holl has about $20 million under management, mainly for high-net-worth individuals and small institutions. Holl wants to expand into the midsize institutional market - mainly among endowments and charitable foundations - as well as into subadvisory assignments such as fund-of-funds programs, said President Eric Fry.
Growth stocks outperformed value so far this year, according to Standard & Poor's. The total return for the S&P 500/BARRA Growth Index for the month of April was 8.07%. The index's total return for the year to date was 11.94%. In comparison, the total return for the S&P 500/BARRA Value Index for the month was 3.75% and for the year to date, 5.58%.
The total return for the S&P 500 for the month was 5.97%, and for the year through April 30, 8.81%. The total return for the S&P SmallCap 600 Index for April was 1.23%, and for the year through April 30, -4.4%. The total return for the S&P MidCap 400 Index for April was 2.59%; the total return for the MidCap 400 for 1997 through April 30 was 1.07%.