University of Houston System hired two fixed-income managers to run a total of $34 million on behalf of the school's $695 million endowment and redeemed from two other managers.
At the endowment's board of regents meeting on Aug. 20, the board approved hiring Loomis, Sayles & Co. to run $17 million in a domestic core-plus fixed-income strategy, and Pacific Investment Management Co. to run $17 million in PIMCO's Total Return Fund.
The hires were made following the university's recent plan to increase its allocation to fixed income to 15% from 10%.
The board also agreed to partially redeem $26 million from Smith Graham & Co. Investment Advisors' intermediate aggregate bond fund.
The fund now has $26 million remaining after the redemption, said Shawn Lindsey, a university spokeswoman.
The board also agreed to fully redeem about $39 million from a hedged value equities strategy managed by Gotham Asset Management, citing underperformance.
The proceeds will be reallocated to the Northern Trust Russell 1000 index fund, which managed $76 million as of Aug. 30.
Cambridge Associates, the system’s investment consultant, recommended the investment actions.