The $6 billion State Universities Retirement System of Illinois reported an overall return, net of fees, of 25.8% for the year ended Dec. 31, according to data released by the system.
The fund's composite benchmark was up 24.6% for the year. (The composite is a blend of the Wilshire 5000, the Lehman Aggregate Bond Index, an Ennis Knupp real estate index and the EAFE 50% hedged index). A public funds index run by Ennis Knupp was up 23.4% in the same period.
Kenneth E. Codlin, chief investment officer, said the universities fund tries to invest in growth, and in 1995 its lineup of active managers performed well.
The system's strategic allocation is 50% U.S. stocks, 10% international stocks, 5% real estate equity, and 35% bonds.
Mr. Codlin said it may happen that its overall allocation to equities will be raised slightly, perhaps to 70%, but nothing has been decided, and that would be decided by the system's board.
Longer term, the system's portfolio had annualized returns of 11.1% for the three years ended Dec. 31, 12% for the five years, and 11.4% for 10 years. The fund's composite benchmark had annualized returns of 11%, 11% and 10.3%, respectively, while Ennis' public fund benchmark was up 10.5%, 12% and 11%, for the same periods.
