Illinois Teachers' Retirement System, Springfield, had a 15.09% investment return for the year ended Dec. 31, according to data from R.V. Kuhns, investment consultant to the $40 billion fund. It had an annualized 12.5% return for the three years ended Dec. 31, 10.64% for the five years and 9.57% for the 10 years. The fund's performance beat its benchmark in all periods by at least 44 basis points and ranked in the 34th, 31st and 21st percentiles of the Mellon public fund universe for the for one-, three- and five-year periods, respectively.
Finalists in several searches - for a manager to run an active international equity portfolio of an undetermined size, a manager to run a $500 million absolute-return strategy, a private equity consultant and a private equity distribution provider - will be presented to the board at its May 17-18 meeting, investment staff told trustees at their Feb. 16 meeting.
TRS and R.V. Kuhns staff are working on three structure studies - real return, domestic and international equity strategies - and specific investment recommendations will be presented to the board at its April 19-20 retreat, CIO Stan Rupnik told trustees at last week's meeting. The board will formally consider the investment recommendations of the studies at its May meeting, said Eva Goltermann, public information officer. The fund could make changes to its international and domestic equity manager lineup or reduce the allocations of existing managers as a result of the studies, said Mr. Rupnik. Fund officials postponed a search for an active domestic large-cap value equity manager pending the results of the study, said Mr. Rupnik. Real return is a new asset class and a $1 billion search was authorized on Feb. 16. Mr. Rupnik told trustees that as the equity studies are wrapping up, TRS and R.V. Kuhns staff will begin work on a fixed-income asset allocation review, which will be presented to the board at its August meeting. The date for that meeting hasn't been set.
Mr. Rupnik also reported to the board that the cost to the system of state-mandated Sudan divestiture between Jan. 26 and Dec. 31 was $2.1 million, excluding opportunity costs, which were not available.
(updated with correction)