Illinois Teachers Retirement System, Springfield, approved investing 11.5% of the systems $8.2 billion international equity portfolio in large-cap-to-midcap core strategy and 12% of the portfolio in small cap, both new allocations. Officials at the $39.7 billion fund reduced the large-cap-to-midcap growth and large-cap-to-midcap value strategies to 30% of the portfolio each, from 37.5% and 52.5%, respectively; and they increased the emerging markets allocation to 16.5% of the portfolio, from 10%. TRS officials plan to make the allocation changes over the next 18 months, according to a news release.
Trustees also authorized a change in the funds search process for domestic and international small-cap and midcap equity managers because of unique capacity constraints, according to the release. TRS officials now will present small-cap and midcap equity managers with available capacity to the board, rather than conducting individual searches.
Separately, the systems board authorized several searches, including one for managers to run a total of $1.6 billion in 130/30 strategies, according to Eva Goltermann, public information officer. Fund officials will also seek active domestic equity managers to run large-cap growth and small cap-to-midcap value and growth portfolios. Neither the sizes of the allocations nor the number of managers sought for each asset class was specified, Ms. Goltermann said. The searches are the result of structural changes to the systems $16.2 billion domestic equity portfolio, first reported Monday afternoon on Pensions & Investments website, www.pionline.com. Ms. Goltermann said manager terminations to fund these searches were not planned at this time.
The fund will also search for managers to run active international small-cap equity, active emerging markets equity and passive and/or enhanced international equity strategies. The size of the portfolios and number of managers to be sought were not specified.
Trustees also approved a search for a master trust/custody provider. Incumbent Northern Trust can rebid. Finalists will be presented to the board in spring 2008, according to the release.