The Illinois Teachers' Retirement System, Springfield, today announced it hired active domestic equity managers T. Rowe Price and AQR Capital Management. T. Rowe Price is running $700 million in large-cap growth for the $36.5 billion plan. About $375 million of the funding came from the closing of a Russell 1000 Growth index portfolio managed by State Street Global Advisors. The remaining $325 million came from a regular rebalancing of the domestic equity portfolio, said Eva Goltermann, TRS public information officer.
AQR manages $250 million in small-cap value. Most of the funding came from the termination in May of Ariel Capital Management, which managed $215 million in active domestic small-cap to midcap value equities, said Ms. Goltermann. Those assets were transferred into two passive portfolios managed by SSgA. To fund the AQR hire, a $107 million Russell 2000 Value index portfolio was closed and a $204 million Russell 2500 value index portfolio was reduced by $143 million, she said.
The hirings were approved at the system's Nov. 3 meeting, TRS staff notified trustees that manager changes will no longer be publicly announced until the new manager is trading securities in the portfolio.