New School University, New York, raised its equity and alternatives allocations and reduced fixed income and cash, said Frank Barletta, associate vice president and treasurer. The $128 million endowment increased its equity target to 50% from 39%, increased alternatives to 30% from 20% and reduced fixed income and cash to 20% from 41%, Mr. Barletta said. Endowment officials made the move because they were concerned about the effect of low interest rates on bonds, he said. No consultant was used.
As part of the allocation shift, the endowment committed $5 million to a new hedge fund of funds; Mr. Barletta would not to identify the manager. Funding came from closing a $20 million Lehman Aggregate Corporate Bond index fund run by Barclays Global Investors, he said. BGI runs the remaining $15 million in a money market account. No further manager changes are expected, he said.