Illinois Teachers Retirement System, Springfield, put three firms on watch for the first time: PIMCO, which runs $1.5 billion in active domestic fixed income; Morgan Stanley, $687 million in active domestic bonds; and Neuberger Berman, $194 million in active domestic equities. The action was triggered when the managers returns fell below a point previously established by the $21.3 billion system; Neuberger Berman was also put on watch because of organizational concerns. Three active domestic fixed-income managers remain on watch for performance: BlackRock, which runs a $1.7 billion portfolio; Payden & Rygel, $702 million; and Weiss, Peck & Greer, $712 million.
Ariel Capital, which manages $204 million in active domestic small-cap value equities, was removed from the watchlist, where it had been placed because of personnel turnover.
An additional allocation of $25 million made to NorthPointe Capital Management at the systems December board meeting was delayed because performance of the firms $300 million active domestic small-cap to midcap equity portfolio is approaching watchlist status. The $25 million will be parked in an index fund run by State Street Global Advisors.
The system also committed up to $50 million to Castle Harlan Partners IV, a buyout fund, and up to $50 million to the OCM Opportunities V Fund, a distressed debt fund.