Illinois Teachers Retirement System, Springfield, is accepting RFIs for private equity, real estate and absolute return (hedge fund) emerging managers. The board of the $38.7 billion system added the asset classes to its emerging manager program on Thursday. The systems allocation to emerging manager investments is $500 million, of which $120 million had been committed or invested as of April 30. CIO Stan Rupnik said manager research, due diligence and selection will be handled primarily by existing TRS staff members, assisted by general consultant R.V. Kuhns, private equity consultant PCG and real estate consultant Callan Associates. Emerging alternatives managers are invited to submit RFIs at http://trs.illinois.gov; emerging manager selection is opportunistic, and searches are not conducted.
Separately, the system hired Loomis Sayles to manage $675 million in long-duration global fixed income and promoted fixed-income manager Dolan McEniry Capital Management from its emerging manager program, increasing its core domestic portfolio to $170 million from $28.5 million. Funding for both moves will come from rebalancing the portfolios of the systems other fixed-income managers.
The system board also on Thursday hired its first active international small-cap equity managers. American Century Investments will manage $140 million in growth, and Dimensional Fund Advisors will run $200 million in value. Funding will come from rebalancing other international equity managers, said spokeswoman Eva Goltermann. The system also committed €25 million ($39 million) to Avenue Europe Special Situations Fund, a private equity fund that will invest in distressed situations. Funding will come from cash and passive/enhanced index accounts.
Trustees doubled the systems allocation to passive U.S. large-cap equities to 8% of total assets, with funding coming from reducing U.S. enhanced index equity to 21% from 25%. Assets will be distributed among the systems existing U.S. large-cap passive equity managers.