University of Texas Investment Management Co. officials proposed new asset allocation targets for the fiscal year ending Aug. 31, 2015, for the $25 billion the Austin-based firm manages in endowment funds for the University of Texas System and Texas A&M.
The new targets are:
- Developed market equity, up to 45% from 43.8%;
- Emerging markets equity, down to 15% from 15.4%;
- Natural resources, up to 14% from 13.3%;
- Investment-grade fixed income, down to 9% from 10.5%;
- Credit-related fixed income, down slightly to 8.5% from 8.8%; and
- Real estate, up slightly to 8.5% from 8.2%.
Meeting materials for the July 29 UTIMCO board meeting also proposed new targets for the endowments’ broad asset groupings: more correlated and constrained (long-only), 40%, down from 41.5%; less correlated and constrained (hedge funds), unchanged at 30%; and private investments, 30%, up from 28.5%.
Chief Investment Officer Bruce Zimmerman could not be reached by press time for comment. UTIMCO spokeswoman Christy Wallace said the board approved all resolutions presented at its July 29 meeting.
The Board of Regents of the University of Texas System must approve the changes to UTIMCO’s asset allocation, as well as other investment policy changes.
