Illinois Teachers' Retirement System, Springfield, terminated AllianceBernstein Institutional, which ran $636 million in active domestic large-cap value equities, due to concerns over pending Enron litigation, according to a statement from the $21 billion system. Hired as partial replacements were Bear Stearns and Boston Partners, each of which will run $145 million in the same asset class.
"We're surprised by the development, given the excellent performance over the course of the relationship (since April 1998). Enron was not a stock ever owned in this portfolio," said Marc Mayer, AllianceBernstein Institutional executive vice president of marketing and sales.
Trustees also reduced the system's fixed-income allocation to 26% from 35%. As part of the downsizing, the board terminated Chicago Capital Management, which managed $675 million in active domestic fixed income, and Julius Baer, which handled $612 million in active international fixed income.