Illinois Teachers' Retirement System, Springfield, hired Dodge & Cox to manage $715 million in active domestic core fixed income - $588 million from the regular assets of the plan and $127 million from the proceeds of pension obligation bonds. Partial funding came from the termination earlier this year of core bond manager Morgan Stanley, which ran $408 million, and $180 million from a Northern Trust Lehman Aggregate fund used for transition management. Callan assisted.
Trustees also instructed staff to draft revised investment guidelines that would permit investment of 1% of plan assets in hedge funds. A final decision is expected at the board's Dec. 12 meeting.