Teachers' Retirement System of Illinois, Springfield, will review its asset allocation after Keith Bozarth, executive director, begins work Sept. 15.
According to Jon Bauman, COO for the $19.8 billion fund, an asset allocation study has been in the works since last year.
The fund's current actual asset allocation is: 39% U.S. equities; 11.3% non-U.S. equities; 28.1% U.S. fixed income; 5.1% non-U.S. fixed income; 12.5% real estate; 2.4% alternative investments; and 1.6% cash and miscellaneous.
Meanwhile, the fund's board voted today to terminate Sturdivant & Co., which managed $100 million in large-cap value equity, for performance reasons. The money will be moved to existing manager Paradigm Asset Management, which already manages $232 million. Sturdivant executives were unavailable for comment.
Also, executives from Independent Fiduciary Services today presented an interim report on their review of the fund's investment management practices, including risk monitoring capabilities and real estate investment decisionmaking.
Indiana State Police Pension Fund, Indianapolis, investing in equities for the first time, hired six new managers for a total of $68.8 million, said Mike Fritt, portfolio manager for the $252 million fund.
They are: Euro Pacific, $5.8 million, international equity; Denver Investment, $15.9 million, small-cap value; State Street Research & Management, $11 million, S&P 500 index; Cadence Capital Management, $21 million, core domestic; BlackRock Financial Management, $5.8 million, small-cap growth; and PIMCO, $10 million enhanced index.
Mr. Fritt said funding came from the fund's $146 million fixed-income portfolio, which is managed in-house. Oxford Financial assisted.
