Illinois Teachers' Retirement System, Springfield, kept the following active equity managers on watch: INVESCO Global Asset Management, managing $705 million in an international portfolio, due to concerns about mutual fund market-timing investigations; NorthPointe Capital, $393 million, domestic small caps, due to underperformance; Artisan Partners, $370 million, international, due to underperformance and organizational concerns; and Great Lakes Advisors, managing $60 million, domestic large caps, due to organizational concerns.
Separately, the $31 billion system's board set numeric targets for assets to be run by emerging, minority-owned and women-owned money managers and trading services provided by broker-dealers, said Jon Bauman, executive director. The system set targets for the managers of 12.5% of total assets, or $3 billion, in 2005 and 15%, or $4 billion, in 2006; targets for 2007 will be determined next year. It won't have to make changes in manager allocations to meet the 2005 target, but it might have to adjust the ratio of passive to active management for subsequent years, Mr. Bauman said. The system set targets for the broker-dealers of 10% of equity trades and 7.5% of fixed-income trades for 2005; 12.5% equity and 8.5% fixed income for 2006; and 15% equity and 10% fixed income for 2007.