Teachers' Retirement System of Illinois, Springfield, hired R.V. Kuhns & Associates as investment management consultant, replacing Callan Associates, after a search begun last year as part of the $35.4 billion plan's standard contract rebidding process.
The system also hired Lehman Brothers Asset Management to run a $650 million in enhanced fixed income. Funding came from a $660 million Lehman Aggregate index fund managed by SSgA, said Eva Goltermann, public information officer.
The TRS board also approved $260 million in commitments to the following private equity managers: $100 million to Madison Dearborn Capital Partners V; $90 million to Carlyle/Riverstone III; $50 million to Energy Capital Partners; and $20 million to Belvedere Capital Fund II. The hires are part of the plan's continued allocation to private equity, and funding came from cash and index accounts, according to a statement.
Separately, the system will search for six transition managers for ongoing portfolio restructuring and other transition duties. Trustees approved the search at the board's Feb. 16-17 meeting. The search is being undertaken because four of the six transition managers now on TRS' approved list have experienced senior management changes, said Ms. Goltermann. Managers on the list will be used as needed. The existing managers - State Street Brokerage, Goldman Sachs, Russell Investment Group, Northern Trust, Deutsche Bank and Morgan Stanley - can rebid. Selections are expected before the end of May.