Key Takeaways
- • Ohio STRS warned of a "material" increase in US recession risk compared with last year, and is preparing for a wider, "negatively skewed" distribution of outcomes over the next 12 months.
- • The 81 per cent funded Ohio plan is tilting toward fixed income and liquid alternatives while reducing its equity exposure, with liquidity as a priority.
- • TRS doubled its small gold allocation this year through a special fund buying gold ETFs and mining companies, with the strategy returning nearly 60 per cent.
- • Fordham University's $1.1 billion endowment, under CIO Geeta Kapadia, is cutting private credit and redirecting capital into venture and growth equity with fewer, larger high-conviction manager mandates.
- • South Carolina Retirement System Investment Commission is raising allocations to private equity and private credit as improved cashflow gives it more liquidity headroom.
Summary
The State Teachers Retirement System of Ohio has warned of a "material" increase in US recession risk compared with last year, as the fund prepares for a wider, "negatively skewed" distribution of outcomes over the next 12 months. The mature plan, which is 81 per cent funded, is tilting toward fixed income and new asset classes such as liquid alternatives, moving away from equities. The shift reflects a priority on liquidity as the fund positions for a more uncertain macroeconomic backdrop.
TRS, a separate plan referenced in the same coverage, doubled its tiny gold allocation this year through a special fund that invests in gold ETFs and mining companies. According to the report, the strategy returned nearly 60 per cent, with gains attributed to inflation, geopolitics, government debt levels and de-dollarisation pushing gold higher.
On currency and capital flows, Singapore's Temasek said that while US exceptionalism may be "fraying", few alternative markets can absorb the same volume of global capital. Fellow sovereign fund GIC believes the dollar's reserve currency status remains solid, although currency swings could create difficulties for foreign investors.
Fordham University is reshaping its approach as well. CIO Geeta Kapadia is reducing private credit exposure, describing the asset class as "less able to financially engineer returns" in a higher-rate environment. The $1.1 billion endowment is redirecting capital toward venture and growth equity and entrusting larger mandates to a smaller group of high-conviction managers.
South Carolina Retirement System Investment Commission's improved liquidity position has allowed it to tilt toward unlisted assets, including private equity and private credit. The plan's growth has been supported by funding reform, improved salaries and positive investment returns, and it is now seeking to boost long-term performance.
TRS, a separate plan referenced in the same coverage, doubled its tiny gold allocation this year through a special fund that invests in gold ETFs and mining companies. According to the report, the strategy returned nearly 60 per cent, with gains attributed to inflation, geopolitics, government debt levels and de-dollarisation pushing gold higher.
On currency and capital flows, Singapore's Temasek said that while US exceptionalism may be "fraying", few alternative markets can absorb the same volume of global capital. Fellow sovereign fund GIC believes the dollar's reserve currency status remains solid, although currency swings could create difficulties for foreign investors.
Fordham University is reshaping its approach as well. CIO Geeta Kapadia is reducing private credit exposure, describing the asset class as "less able to financially engineer returns" in a higher-rate environment. The $1.1 billion endowment is redirecting capital toward venture and growth equity and entrusting larger mandates to a smaller group of high-conviction managers.
South Carolina Retirement System Investment Commission's improved liquidity position has allowed it to tilt toward unlisted assets, including private equity and private credit. The plan's growth has been supported by funding reform, improved salaries and positive investment returns, and it is now seeking to boost long-term performance.
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