Teachers' Retirement System of Illinois, Springfield, shifted $545 million today at a board meeting, most of the changes resulting from the termination of RCM Capital Management. A decision on a new asset allocation is likely to be made at the board's next meeting in late February.
RCM was terminated for a large-cap growth portfolio of at least $475 million. Of that, more than $200 million will go to Munder Capital Management and $150 million to Lincoln Capital, both for growth equities. For value equities, $75 million will shift to Oppenheimer, $25 million to Sturdivant and $25 million to Paradigm. All are existing managers.
In a presentation to the board, RCM executives agreed their performance has been average, but said the firm fared better on a risk-adjusted basis.
Also, Mentor Investment Group was hired for $25 million in small-cap growth stocks; an existing PIMCO equity portfolio was given $25 million more; and an existing small-cap portfolio run by Fiduciary Management was given $20 million more.
Funding for all three came from Zimmerman Investment Management, which had been terminated earlier.