Illinois Teachers Retirement System, Springfield, as part of an ongoing asset allocation review and plan restructuring, changed its asset allocation targets through 2006. Domestic equities will be 41% as of June 30, up from 34.6%; fixed income, 23%, down from 35.3%; international equities, 15%, up from 14.7%; real estate, 14%, up from 10.6%; private equity, 6%, up from 2.8%; and short-term investments, 1%, down from 2%.
Separately, the $22 billion system hired Advisory Research and Great Lakes Advisors to run $45 million each in active domestic large-cap value equities, and MFS to run $300 million in active domestic large-cap growth equities. It also added to several equity portfolios, rebalancing to targets: Oak Advisors received $24 million, boosting its portfolio to $153 million; Dodge & Cox, $78 million, for a total of $920 million; Earnest Partners, $10 million, to $105 million; North Pointe, $38 million, to $343 million; and Neuberger Berman, $44 million, to $267 million. Funding came from a $610 million international fixed income portfolio run by Rogge Global Partners, which was terminated for performance; those assets were combined with $320 million in cash. Richard Gilmartin, Rogge marketing director, declined comment.
Of those funds, the remaining $346 million will be parked in a State Street Global Flagship Fund, which tracks the S&P 500 index, until the system hires domestic small-cap to midcap growth and value managers at the boards October meeting. Gordon Dickinson of consultant Callan is assisting.
Trustees also committed up to $150 million to the Carlyle Private Equity Partners II fund.