University of Alabama to Increase Bond Exposure
The University of Alabama has removed a portion of its assets from the equity market in favor of “more stable U.S. and international bonds,” according to published reports.
The $820 million endowment fund was advised on the decision by consultant David Center of Hammond Associates who, according to The Tuscaloosa News said: “We just think it makes sense. The risk seems to outweigh the reward in some [stocks]. We are looking over the long horizon in taking care of this institution, but we can’t ignore the current market conditions and the elevated risk.”
Five percent of the fund’s assets will be moved out of stocks into fixed-income investments. It could not be determined how the reshuffling in the allocations may affect the endowment’s manager roster, however, as investment officer Thomas Gale declined comment when contacted by IMW.
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