Illinois Teachers' Retirement System, Springfield, will search for an active domestic large-cap value equity manager at the end of the month, said Eva Goltermann, public information officer for the $36.8 billion pension plan. The amount of the portfolio has not been determined.
Funding comes a $162 million portfolio run in a similar style by Great Lakes Advisors, which was terminated for performance and organizational concerns at the fund's Aug. 1 board meeting. Edward J. Calkins, CIO and managing director of Great Lakes Advisors, said: "We've had a successful relationship with Illinois Teachers over the past three years and wish them well in their new investment strategy."
The board also terminated Holland Capital, which managed $315 million in active domestic large-cap growth equities, because of performance and organizational concerns. Susan Chamberlain, Holland Capital's COO, said: "We regret Illinois Teachers' decision and are sorry to lose the plan as a client."
Until it is reassigned to other managers, the money from the terminated firms will be moved into a $900 million S&P 500 index account managed by RhumbLine Advisors, Ms. Goltermann said.
Specific criteria and an RFP will be available Aug. 25 in the vendor information section at http://trs.illinois.gov. Candidates will be interviewed at the Nov. 2-3 board meeting, said Ms. Goltermann.
Separately, PIMCO, which manages $935 million for the fund in its StocksPLUS enhanced index strategy, was automatically put on watch after its performance fell below the system's preset benchmark.
TRS also approved a $50 million investment in the RLJ Lodging Fund II, which specializes in hotel investments. Funding will come from cash and a reduction in passive and enhanced index accounts. No further information was available.
