Illinois State Universities Retirement System, Champaign, put four managers on a newly created watchlist, said Daniel L. Allen, CIO of the $16.1 billion system. Capital Guardian, which manages $440 million in active global equities for the fund, and Ariel Capital Management, $50 million in active domestic midcap value equities, were both cited for performance. Zenna Financial Services, which manages $66 million in an S&P 500 index fund, and NCM Capital Management, which manages $21 million in active domestic midcap growth equities, were cited for organizational issues.
At Ariel, Mellody Hobson, president, said: Hopefully this will be short-lived. All our funds are having a good year. Weve done this by keeping to our investment style. Patience is being rewarded. We are optimistic about the numbers.
At Capital Guardian, Charles Freadhoff, media relations coordinator, said the firms policy is not to discuss client matters.
The system has never used a watchlist before and is still developing criteria, including terms for moving firms from it, Mr. Allen said.