University of Maine System investment committee approves updated managed-investment-pool policy; consultants flag two underperforming global equity managers
May 08, 2026 | University of Maine System UMS Board of Trustees, Public Universities, School Districts, Maine
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The University of Maine System Investment Committee on May 2026 approved an updated Investment Policy Statement (IPS) for the managed investment pool and received quarterly performance and fee reviews from its consultants, NEPC and CapTrust.
NEPC consultants presented the capital-markets review and portfolio results for the first quarter. Matt of NEPC tied March’s sell-off — and the relative underperformance of non-U.S. markets — to the outbreak of conflict in the Middle East and said April’s rebound put many indexes back into positive territory. Kelly of NEPC summarized portfolio-level results: the operating fund rose by about $34 million in Q1 to roughly $263 million, the pension fund fell about $1 million (ending “just shy” of $15 million), and the managed investment pool ended the quarter near $400 million after an approximately $12 million decline.
Kelly and NEPC recommended one governance change: update the managed investment pool IPS to memorialize allocation changes previously approved by the committee (adjusted equity sub‑asset targets and permissible ranges) and to change the private‑equity benchmark from Cambridge to MSCI. Trustee Martin read the resolution; Trustee McMahon moved the measure and Trustee Baldacci seconded. After a roll-call vote the chair announced, “The motion carries.” The transcript does not include a detailed vote tally.
NEPC also delivered manager due‑diligence updates. Walter Scott has been removed from the portfolios and its assets transitioned in April to a passive fossil‑fuel‑free global equity exchange‑traded fund, NEPC said. Two remaining global equity managers drew heightened scrutiny: Impax was placed on hold after portfolio‑management changes (NEPC said the team is adding co‑portfolio managers and will monitor the strategy), and Lindsell Train was placed on hold for underperformance. NEPC reported Lindsell Train underperformed by about 10% in the quarter and cited approximately 15% of the strategy’s assets exiting the fund — a figure the consultant reported as about $2.3 billion — and said it will return with further analysis and a recommendation at the next meeting. "We've placed them on hold," Kelly said, adding NEPC will complete additional analysis and report back.
On the defined‑contribution side, CapTrust’s Jennifer Barker (the adviser newly introduced to the committee) reviewed regulatory developments (including the CARES Act, the SECURE Acts and a recent Department of Labor proposed rule on fiduciary duties for designated investment alternatives) and presented fund scorecards. Barker identified three funds marked for review — the CREF Responsible Balance strategy, JPMorgan Equity Income and Victory Sycamore Established Value — but recommended no immediate menu changes, proposing comparative analysis at the next review.
Mike P. of CapTrust presented the annual fee benchmark for TIAA recordkeeping and the plan’s investment expenses. CapTrust reported total plan assets of about $2.17 billion across plans, an average account balance near $206,000, a weighted average investment expense of roughly 11 basis points (9 basis points after revenue credits), and a recordkeeping/administration fee of $45 per participant. CapTrust said $45 per participant is within a reasonable market range for similar plans but recommended opening discussions with TIAA to explore potential further movement on fees.
The committee also paused for a personnel transition: Barry (the long‑serving CapTrust adviser) announced his retirement and introduced Jennifer Barker as his replacement for the University of Maine relationship. Barry said he had worked with the University relationship since 2013 and praised the team’s partnership; Barker said she will lead the defined‑contribution reviews going forward.
Next steps recorded in the meeting: NEPC will return with deeper due‑diligence findings and recommendations for Impax and Lindsell Train at the next committee meeting; CapTrust will follow up on the TIAA fee discussion; and the redlined IPS for the managed investment pool will be implemented as approved.
The committee adjourned with thanks to the consulting teams and with no additional formal votes recorded.
NEPC consultants presented the capital-markets review and portfolio results for the first quarter. Matt of NEPC tied March’s sell-off — and the relative underperformance of non-U.S. markets — to the outbreak of conflict in the Middle East and said April’s rebound put many indexes back into positive territory. Kelly of NEPC summarized portfolio-level results: the operating fund rose by about $34 million in Q1 to roughly $263 million, the pension fund fell about $1 million (ending “just shy” of $15 million), and the managed investment pool ended the quarter near $400 million after an approximately $12 million decline.
Kelly and NEPC recommended one governance change: update the managed investment pool IPS to memorialize allocation changes previously approved by the committee (adjusted equity sub‑asset targets and permissible ranges) and to change the private‑equity benchmark from Cambridge to MSCI. Trustee Martin read the resolution; Trustee McMahon moved the measure and Trustee Baldacci seconded. After a roll-call vote the chair announced, “The motion carries.” The transcript does not include a detailed vote tally.
NEPC also delivered manager due‑diligence updates. Walter Scott has been removed from the portfolios and its assets transitioned in April to a passive fossil‑fuel‑free global equity exchange‑traded fund, NEPC said. Two remaining global equity managers drew heightened scrutiny: Impax was placed on hold after portfolio‑management changes (NEPC said the team is adding co‑portfolio managers and will monitor the strategy), and Lindsell Train was placed on hold for underperformance. NEPC reported Lindsell Train underperformed by about 10% in the quarter and cited approximately 15% of the strategy’s assets exiting the fund — a figure the consultant reported as about $2.3 billion — and said it will return with further analysis and a recommendation at the next meeting. "We've placed them on hold," Kelly said, adding NEPC will complete additional analysis and report back.
On the defined‑contribution side, CapTrust’s Jennifer Barker (the adviser newly introduced to the committee) reviewed regulatory developments (including the CARES Act, the SECURE Acts and a recent Department of Labor proposed rule on fiduciary duties for designated investment alternatives) and presented fund scorecards. Barker identified three funds marked for review — the CREF Responsible Balance strategy, JPMorgan Equity Income and Victory Sycamore Established Value — but recommended no immediate menu changes, proposing comparative analysis at the next review.
Mike P. of CapTrust presented the annual fee benchmark for TIAA recordkeeping and the plan’s investment expenses. CapTrust reported total plan assets of about $2.17 billion across plans, an average account balance near $206,000, a weighted average investment expense of roughly 11 basis points (9 basis points after revenue credits), and a recordkeeping/administration fee of $45 per participant. CapTrust said $45 per participant is within a reasonable market range for similar plans but recommended opening discussions with TIAA to explore potential further movement on fees.
The committee also paused for a personnel transition: Barry (the long‑serving CapTrust adviser) announced his retirement and introduced Jennifer Barker as his replacement for the University of Maine relationship. Barry said he had worked with the University relationship since 2013 and praised the team’s partnership; Barker said she will lead the defined‑contribution reviews going forward.
Next steps recorded in the meeting: NEPC will return with deeper due‑diligence findings and recommendations for Impax and Lindsell Train at the next committee meeting; CapTrust will follow up on the TIAA fee discussion; and the redlined IPS for the managed investment pool will be implemented as approved.
The committee adjourned with thanks to the consulting teams and with no additional formal votes recorded.
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