Illinois Teachers Retirement System, Springfield, will initiate a "stand-by search for an active international equity manager to run $497 million. Consultant Callan Associates will conduct the search. Current portfolio manager Martin Currie was placed on watch for organizational reasons and because its returns fell below a preset point established by the $21.3 billion system, triggering the watch. A decision on retaining or terminating Martin Currie will be made later, according to a statement from the TRS.
Separately, trustees retained State Street Global Advisors as manager of a combined $4 billion in passive strategies for an additional two years. SSgA has managed index funds for the system since 1998.
The board also hired Grantham Mayo Van Otterloo to manage $230 million in emerging markets equities, and Harris Associates and Artisan Partners to run $215 million each in a return-focused international equity strategy. Funding came from reducing the portfolios of existing active international equity managers Brandeis, Capital Guardian Trust, Delaware Investments, INVESCO and Martin Currie. The total international equity allocation at TRS is $2.8 billion, of which $135 million is passively managed and will not be affected, said John Day, assistant executive director and acting CIO.