Illinois State Universities Retirement System, Champaign, could initiate a search next month for a manager of emerging managers to run $365 million, said CIO Daniel L. Allen. He expects to ask the system's board at its March 9 meeting for authorization to issue an RFP. The $15.3 billion system plans to consolidate its two existing manager-of-emerging-managers programs, one run by Progress Investment Management, which oversees $190 million, and the other overseen by Northern Trust Global Advisors, with $175 million. The chosen firm would receive the entire allocation of programs. Both incumbents can rebid, he added. SURS staff decided that investment fees could be reduced by consolidating the programs. Separately, the system is considering long/short or 130/30-type equity strategies, said Mr. Allen. Staff is still studying the strategies and could make a decision later in the year.
Sacramento (Calif.) County Employees' Retirement System has a new asset-liability study scheduled for completion by its May 17 meeting, with a new asset mix to be decided at the June 21 meeting, said Jeffrey W. States, CIO of the $5.9 billion pension fund. The study, being conducted by Mercer Investment Consulting, will look at private equities and commodities, where the fund currently has no exposure, Mr. States said. The fund's current target asset mix is 35% U.S. equities; 20% international equities; 25% fixed income; 5% hedge funds; and 15% real estate.
Arizona State Retirement System, Phoenix, is researching whether to increase its allocation to value-added strategies and if it should invest in internally and externally managed absolute-return strategies, confirmed Paul Matson, director. The $25.5 billion fund invests in value-added strategies, but Mr. Matson could not provide details on the investments. There are no plans to hear presentations on the strategies, he said.