University and Community College System of Nevada, Reno, selected four mutual funds for its $200 million operating fund. It will invest $34 million in a Grantham Mayo Van Otterloo domestic core equity fund; $20 million, Och-Ziff absolute return; $20 million, Farrilon absolute return; and $17 million, Commonfund international equity. Funding will come from reducing active domestic fixed-income manager PIMCOs $80 million portfolio by $64 million; the remaining $27 million will come from cash. PIMCO will continue to manage $16 million for the system in its Total Return fund, said Stephen Salaber, interim director of banking and investments.
In addition, the systems $250 million endowment invested $10 million in a REIT fund managed by EII, replacing John McStay because it underperformed the Wilshire NAREIT index, said Mr. Salaber. Officials at McStay did not comment by press time.
Cambridge Associates assisted.