State Universities' Retirement System of Illinois, Champaign, plans to develop a new approach for hiring minority and other emerging managers, said James Hacking, executive director of the $6.8 billion fund.
The system has dropped its last minority manager - Holland Capital Management, which ran $34 million. Among the ideas the board is considering: using a manager-of-managers approach; choosing a firm specializing in the area; or hiring someone in-house to identify minority and emerging managers, handle searches and make recommendations. Mr. Hacking said the board could decide to use a combination of approaches. It could make a decision in December.
The system dropped two other domestic equity managers - Fisher Investments, which ran $34 million, and Rosenberg Institutional Equity Management, which ran $102 million. Proceeds from all three portfolios will be placed with the system's $2.4 billion in index funds managed by BZW Barclays Global Investors.