The University of Texas/Texas A&M Investment Management Co., Austin, expects to allocate an additional $300 million each to strategic partners BlackRock and J.P. Morgan Asset Management in 2021, according to a report for a board of directors meeting Thursday.
The board approved the hire of the two firms in December 2019 to manage a total of $1 billion each in customized portfolios with allocations of 82% to public market equity and 18% to publicly traded fixed income.
Funding of the two mandates is gradual: So far, each firm received $300 million on April 30 and $125 million on July 31. As of Sept. 30, J.P. Morgan managed $481 million and BlackRock managed $473 million.
In the report, Kenneth Standley, senior director-strategic partnerships, said UTIMCO is targeting early 2022 to bring each manager up to the full $1 billion allocation.
The report showed that since inception (April 30) through Sept. 30, J.P. Morgan's portfolio returned 17.7% with 3.7% alpha. BlackRock's portfolio returned 15.2% with 1.2% alpha.
Mr. Standley said in the report that both managers have contributed to UTIMCO's knowledge base through research projects, semiannual portfolio reviews, in-depth strategy discussions and tactical asset allocation views.
UTIMCO managed a total of $51.9 billion as of Sept. 30, with $38.8 billion from the two educational endowments and the balance managed in operating funds for the system.
