Teachers' Retirement System of the State of Illinois, Springfield, lowered the minimum qualifications for general investment consultants as part of the $34.9 billion system's ongoing search. The amendment requires that consultants provide advice to a client base with a minimum of $25 billion of assets and at least one client with at least $10 billion of assets. The old standard required a minimum of $50 billion in total client assets and at least one client with $20 billion. The revised RFP will be available Dec. 23 on the TRS website, http://trs.illinois.gov/Vendor_Information.htm. The fund has also posted an RFP on its website as part of its search for a specialist private equity consultant, with proposals due 2 p.m. CST Jan. 6.
Separately, the board approved a new domestic equity structure on Dec. 8. Active domestic equity managers J.&W. Seligman, which handled $286 million in small-cap to midcap growth, and Advisory Research, which ran $88 million in large-cap value, were terminated for performance. Neither Rebecca Shroyer, a J.&W. Seligman spokeswoman, nor Brien O'Brien, CIO of Advisory Research, returned calls by press time seeking comment.
Also, the following target allocations for active domestic equity managers were increased at the system's Dec. 8 meeting, said Jon Bauman, executive director:
-- Turner Investment Partners and Voyageur Asset Management each will manage $775 million in large-cap growth, up from $433 million and $473 million, respectively. Funding will come from reductions in large-cap value equities, including Bear Stearns which was terminated in November from a $747 million account.
-- Great Lakes Advisors will manage $181 million in large-cap value, up from $88 million. Funding will come from terminating Advisory Research.
-- Thompson, Siegel & Walmsley will manage $233 million in small-cap value, up from $216 million. Funding will come from terminating other managers or reducing their portfolios.
-- Small-cap growth managers Emerald Advisors and Batterymarch each will manage $233 million, up from $202 million and $204 million, respectively. Mazama Capital will manage $109 million in small-cap growth, up from $57 million. Funding will come from terminating other managers or reducing their portfolios.
Also, Ariel Capital Management' active domestic small-cap to midcap value portfolio will be reduced to $194 million from $451 million. Ariel was on the plan's automatic watchlist for performance reasons.
Callan assisted in restructuring the domestic equity portfolio.
Additionally, trustees committed $15 million to ICV Partners II, part of the fund's ongoing allocation to private equity.