TIAA’s OCIO Wins Another Mandate

Covariance Capital Management will manage a portion of the University of Connecticut Foundation’s $363 million endowment.

The University of Connecticut Foundation has chosen Covariance Capital Management to serve as outsourced-CIO (OCIO).

Covariance, the newly rebranded TIAA’s OCIO subsidiary, will manage nearly $130 million, or about one third of the foundation’s $363 million endowment. After a trial period, the foundation will determine whether to hand more assets to Covariance based on its performance.

 “We are honored that the University of Connecticut Foundation has selected Covariance to provide valuable stewardship of a portion of the foundation’s endowment,” the OCIO’s CEO Kevin Nee said in a statement. “Our goal is to empower the foundation to further its mission by providing principled investment leadership to help grow the foundation’s permanent capital.”

As OCIO, Covariance will “work closely with the foundation’s investment committee and investment staff to determine a strategic asset allocation, manage the portfolio across multiple asset classes, maintain appropriate risk controls and liquidity, and rebalance the portfolio as needed,” the firm said.


The Houston, Texas-based provider managed $2.3 billion for endowment clients as of September 2015. Most recently last August, Covariance won a $770 million mandate from the Christian Science Church.

Related: TIAA-CREF’s OCIO Swells with Single Win