Teachers' Retirement System of Illinois, Springfield, with $15 billion in assets, may reduce its 15% allocation to real estate in December following an asset allocation study by Callan Associates. At a board meeting yesterday, Callan consultants recommended the board reduce real estate to 9% of assets. Managers would not be terminated, but as investments were sold, they would not be replaced with additional purchases.
Callan also suggested: reducing U.S. equity to 38% from 40%; increasing non-U.S. equity to 14% from 12%; increasing U.S. fixed income to 30% from 23%; and lowering alternative assets to 2% from 3%. The non-U.S. fixed-income allocation would remain at 7%.
Board members are likely to make a decision on Callan's recommendation at their December meeting.