Teachers' Retirement System of Illinois, Springfield, terminated its six overlay managers, including the firm run by its former chief investment officer.
Following a review by Callan Associates, the $15 billion system terminated the six currency or options overlay managers: Zimmerman Investment Management, owned by former fund CIO Thomas E. Zimmerman; Acorn Derivatives Management; A.G. Bisset; Analytic TSA Global Asset Management; Lotsoff Capital; and Pareto Partners.
According to a prepared statement from the fund, Callan's report said the overlay programs were meeting expectations. But with the switchover to Northern Trust as the system's new custodian, daily review of the managers has been disrupted, which affected the system's required oversight of the programs, the statement said.
The newly elected treasurer of Attleboro, Mass., Ethel Sandbach, plans to talk with Segal Advisors, consultant to the $28 million Attleboro Municipal Contributory Retirement System, about an asset allocation study. Ms. Sandbach, who as city treasurer will serve as a trustee of the fund, said she plans to take a hard look at the pension fund's investments.