Illinois Teachers Retirement System, Springfield, today authorized a search for a prime broker to facilitate the funds planned investment in 130/30 strategies. The RFP will be available by June 15 on the funds website at www.trs.illinois.gov. Trustees of the $39.7 billion fund authorized a search in April for managers to run a total of $1.6 billion in 130/30 strategies. RFPs for those managers should be posted on the website by May 31.
Trustees at todays meeting also hired Bridgewater Associates to manage $500 million and AQR Capital Management to run $250 million, both in global tactical asset allocation/real return assets, and PIMCO to manage $400 million in global inflation-linked bonds. The system also hired K2 Advisors and Grosvenor Capital Management to manage $250 million each in hedge fund of funds. The size of the hedge fund-of-funds portfolios will likely be increased if performance is acceptable, CIO Stan Rupnik said at the meeting. Each of the asset classes is new, and funding will come from cash, passive and/or enhanced index accounts and rebalancing from other active managers, according to board documents. Specific reductions were not detailed.
The changes were part of a massive restructuring of the plans domestic and international equity portfolios, which totaled $15.8 billion and $8.5 billion, respectively, as of March 31.