University of Maine System, Bangor, hired Fidelity Investments to run $18 million in passive intermediate-term U.S. Treasuries for its $357 million managed investment pool of endowment assets.
The system's investment committee approved the hiring at its May 18 meeting, said Tracy E. Elliott, the system's vice president of finance and controller, in an email.
The hiring was the result of the committee's approval earlier this year of changes to the managed investment pool's overall 26.5% target to fixed income.
Those changed included a new target to U.S. Treasuries of 5% of overall managed investment pool assets, an increase of the target to Treasury inflation-protected securities to 5% from 3.5%, a reduction of the target to domestic core fixed income to 6.5% from 9.5% and the elimination of a 3.5% target to short-term TIPS.
Targets of 5% each to absolute-return fixed income and bank loans remain unchanged.
As of March 31, the actual allocation to fixed income was 26%.
Investment consultant NEPC assisted.