Teachers' Retirement System of Illinois, Springfield, invested $100 million in the Hines U.S. Core Office Fund. The $34 billion plan has a 12% allocation to real estate and a target allocation of 14%, said Stan Rupnik, CIO.
At the TRS board meeting on Friday, two managers were added to the plan's watchlist: Ariel Capital Management, which runs $450 million in active domestic small-cap to midcap value equities, for underperforming its benchmark; and Harris Associates, which manages $518 million in active international equities, for organizational and performance reasons. Firms are automatically put on the fund's watchlist when they fall below a set benchmark or experience organizational changes, such as personnel departures or a shift in company ownership.
Remaining on the watchlist for underperforming their benchmarks were: INVESCO, which manages $892 million in active international equities; Boston Co., $807 million in active domestic large-cap value equities; Delaware Investment Management, $558 million in active domestic small-cap to midcap growth equities; Holland Capital Management, $317 million in active domestic large-cap growth equities; and J.&W. Seligman, $285 million in active domestic small-cap to midcap growth equities.
Northern Trust, which manages $622 million in four index funds, was removed from the watchlist, where it had been placed for organizational changes.