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Board approves $750,000 rebalancing to short-duration income fund
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Summary
Trustees approved a rebalancing that moves $500,000 from the Fidelity International Index Fund and $250,000 from cash into the Lord Abbett Short Duration Income Fund to increase the plan’s short-duration fixed-income allocation.
The board approved a rebalancing recommended by Marquette Associates that increases the plan’s allocation to a short-duration fixed-income strategy.
Marquette Associates recommended modest rebalancing to address a near-term cash overweight and to position the plan for upcoming private-market capital calls. The consultant proposed moving $500,000 from the Fidelity International Index Fund (developed non-U.S. equities) and $250,000 from cash held outside principal into the Lord Abbett Short Duration Income Fund, for a $750,000 increase to the short-duration allocation.
Trustees discussed timing: Marquette noted developed non-U.S. equities had rallied since the recommendation was drafted and the change was a small rebalancing intended to reduce cash and add lower-duration credit exposure. Mr. Wing said cash yields were “a little north of 4%” and reiterated the plan held elevated cash to cover anticipated capital calls from Carlyle and TPG.
A trustee moved to approve the modified rebalancing recommendation and another trustee seconded. The board voted with all present saying “aye”; the chair declared the motion carried. Marquette Associates will implement the transfers as authorized by the board.
The approved rebalancing is intended to be operational — to reduce cash held for near-term private-market funding while modestly increasing short-duration income exposure for added yield and lower rate sensitivity. The board will review allocation position and U.S.-equity exposures in a deeper equity-structure discussion scheduled for the next meeting.
