CHAMPAIGN, Ill. — Illinois State Universities Retirement System will add $200 million to an S&P 500 index fund run by RhumbLine Advisers, for a total of $677 million, said Daniel L. Allen, chief investment officer of the $13.4 billion fund. Funding will come from reducing one of two Wilshire 5000 index funds: a $2.6 billion fund run by Northern Trust Global Investments or a $630 million fund run by Barclays Global Investors.
Also, SURS will add $250 million to an international alpha tilt structured active equity strategy run by Barclays Global Investors, raising it to $527 million. Funding will come from reducing an MSCI EAFE value index fund, also managed by BGI, leaving it with $121 million. Mr. Allen said SURS wanted to take additional risk.
The system also will add $75 million to an active international value equity portfolio managed by Mondrian Investment Partners, increasing it to $177 million, Mr. Allen said. Funding comes from reducing an active international equity portfolio with a growth tilt managed by Martin Currie. SURS is also taking an additional $25 million from that portfolio for cash flow needs, leaving it with $361 million after both reductions. The fund is also adding $24 million to an active domestic midcap core equity portfolio managed by New Amsterdam Partners, increasing it to $114 million. Funding comes from eliminating a $24 million concentrated active domestic midcap growth equity portfolio, also managed by New Amsterdam. SURS made both sets of changes to lower risk, Mr. Allen said.