University of Houston System hired Barings to run about $40 million in domestic high-yield fixed income on behalf of its $1 billion endowment.
The system's endowment management committee approved the hiring at its Aug. 23 meeting, a webcast of the meeting shows.
Funding comes from reductions of $30 million from the portfolio of an undisclosed manager's passive domestic large-cap equity portfolio and $10 million from an active domestic large-cap equity portfolio managed by Columbia Threadneedle Investments. The remaining portfolio balances were not disclosed.
As of June 30, the endowment's actual allocation to bonds and cash was 11.3%; the target is 15%.
Investment consultant NEPC assisted.