Illinois Teachers' Retirement System, Springfield, is searching for a domestic enhanced equity index manager to run $2 billion as part of a change in the $32.7 billion system's investment policy away from pure passive management, said Jon Bauman, executive director. The system is also searching for a manager to handle $400 million in global Treasury inflation-protected securities. Funding for both managers will come from reducing index funds managed by State Street Global Advisors and Northern Trust. Further details were not available. Callan Associates' Chicago office is assisting.
As part of its ongoing alternative investment program, the fund allocated $100 million to Carlyle Partners IV, a buyout fund, and $25 million to Shasta Ventures, an early-stage venture capital fund. Mr. Bauman said the board is likely to make more private equity hires at its Feb. 17-18 meeting, although finalists have not been named.
The following firms remained on TRS' automatic watchlist: Artisan Partners, which manages $381 million in active international equities, for performance and organizational concerns; Capital Guardian Trust, which manages $597 million in active international equities, for performance; Northern Trust Global Investments, which manages a total of $1.5 billion in four passive funds, due to relevant staff departures; and J.&W. Seligman, which manages a $244 million active domestic small-cap growth equity portfolio, for performance.correction appended