Illinois Teachers' Retirement System, Springfield, hired five new domestic equity managers for portfolios totaling $1.094 billion. Trustees of the $31 billion pension plan voted Friday to hire Voyageur Asset Management to manage $340 million in active domestic large-cap growth equities. Funding will come from reduction of a large-cap equity index fund. Batterymarch Financial and Emerald Advisors will get $166 million each for active domestic small-cap growth equities; Byram Capital Management and Thompson, Siegel & Walmsley, $166 million each in active domestic small-cap value equities. Funding will come from transition accounts and small-cap equity index funds. Callan Associates assisted.
Trustees awarded Mazama Capital an additional $50 million, increasing its active domestic small-cap growth equity portfolio to $331 million. Funding will come from small-cap equity index funds. Payden & Rygel received an additional $200 million, increasing its active domestic fixed-income portfolio to $968 million. Funding will come from a reduction in passive fixed income.
TRS also committed $100 million each to buyout fund DLJ Merchant Banking Partners IV and subordinated debt fund WCAS Capital Partners IV. Funding for each investment is from a combination of cash flow and proceeds from pension obligation bond sales, said Jon Bauman, executive director.
The following firms remain on the fund's watch list: Artisan Partners, which manages $380 million in active international equities, for performance and organizational reasons; Capital Guardian Trust, $600 million in active international equities, for performance; INVESCO Global Asset Management, $749 million in active international equity, for performance and organizational reasons following settlement of civil regulatory actions; Northern Trust Global Investments, which manages a total of $1.5 billion in four equity and bond index funds, for organizational reasons following the departure of three senior quantitative management employees; and J.&W. Seligman, $244 million in active domestic small-cap growth equities, for performance.