State Universities Retirement System of Illinois, Champaign, increased its non-U.S. equity allocation 7.5 percentage points and hired two emerging managers-of-managers for $55 million each, said John Krimmel, associate investment officer for the $7.5 billion fund. System officials also voted to phase out the system's real estate allocations as existing investments pay out.
The system's EAFE-style equity allocation rose to 15% from 10% and created an emerging markets mandate of 2.5%. As a result, U.S. equities fell to an allocation of 48.5% from 51%, and U.S. fixed income dropped to 30% from 35%. Real estate remains at 4%, but will drop slowly over time. No manager searches will result from the new allocations.
Trustees voted to retain Barclays as the international index fund manager and Brinson Partners, IDS International and Martin Currie as active international managers. Currie will run the new allocation to emerging markets.
Also, trustees hired Progress Investment Management and RCB Trust to oversee emerging managers, who won't be restricted by race or gender. RCB will run a separate account; Progress will run the money in an existing commingled fund.