Illinois Municipal Retirement Fund, Oak Brook, lowered its domestic and international equity target allocations to 41% from 44% and to 15% from 17%, respectively, said Walt Koziol, director of investments. The $14.4 billion plan raised its fixed-income allocation five percentage points to 36% of total assets. The changes resulted from an asset-liability study, he said.
The plan added $110 million to a Lehman Brothers aggregate bond index fund run by Northern Trust, bringing it to $1.3 billion. It also allocated an additional $250 million to a passive EAFE index fund run by Northern Trust, raising it to $506 million. The fund also invested an additional $92 million in an active domestic large-cap growth equity portfolio managed by Holland Capital, increasing it to $182 million. It also put an additional $167 million in an active domestic fixed-income portfolio managed by MDL Capital, raising its allocation to $297 million. The fund also increased its cash position to $286 million from $247 million.
Partial funding came from terminating active equity managers Oak Associates, which handled $100 million in domestic large-cap growth, and Schroder, which ran $420 million in an EAFE strategy. Both terminations were the result of the studys findings, said Mr. Koziol. The remainder of funding came from rebalancing.
Mercer Investment Consulting assisted.