Illinois State Universities Retirement System's investment committee recommended hiring Fidelity Management Trust to run $100 million in active bottom-up core international equities and Delaware International Advisers to manage $75 million in active international value equities. The $11.5 billion system would fund the hirings by reducing two international equity funds; $100 million from Barclays Global Investors' EAFE value index fund, reducing it to $213 million, and $75 million from Martin Currie's active international growth portfolio, leaving it with $357 million.
Also, the Champaign, Ill.-based system's committee recommended creating a formal 4% allocation to global equities. It would increase the portfolios' existing managers Capital Guardian and Wellington by $150 million each; the two firms run $74 million each. Funding would come by reducing equally a Northern Trust Wilshire 5000 fund, leaving it with $2.27 billion, and a BGI All-Country World ex-U.S. index fund, leaving it with $1.01 billion.
Ennis Knupp assisted. The board will vote tomorrow on the recommendations.