Teachers' Retirement System of Illinois, Springfield, set the stage for several changes and possible searches at its board meeting last week.
Trustees approved the hiring of Independent Fiduciary Services to formally review its investment management processes. The review follows criticism by the state auditor general. The fund also decided to hire a CIO after the system hires a new executive director to replace Robert Daniels, who resigned last year. Among other actions:
* Trustees will consider proposals by consultant Callan Associates to create a formal $400 million allocation to emerging markets and to adopt the use of passively managed international equity portfolios.
* The system will consider hiring a dedicated alternative investment management consultant and will meet with Gary Robertson, head of alternative investments for Callan, at its next meeting in August.
* The fund asked for and received a credit of investment management fees of $164,000 paid to Lazard Asset Management as a result of changes to the structure of an equity assignment that was approved by staff but not by board members. Lazard officials declined comment.
* Trustees also revised a plan to create standard agreements with external money managers after it was learned that managers had balked at some of the fund's requested changes.