The $38.7 billion Illinois Teachers Retirement System hired Loomis Sayles to manage $675 million in long-duration global fixed income. Trustees also promoted fixed-income manager Dolan McEniry Capital Management from the funds emerging manager program, increasing the core domestic portfolio to $170 million from $28.5 million. Funding for both will come from the systems other fixed-income managers.
Separately, the board on May 22 hired its first active international small-cap equity managers: American Century for $140 million in growth and Dimensional Fund Advisors, $200 million in value. Funding will come from rebalancing other international equity managers. The system also committed e25 million ($39 million) to Avenue Europe Special Situations Fund, a private equity fund that will invest in distressed situations, with funding coming from cash and passive/enhanced index accounts.
Trustees doubled the systems allocation to passive U.S. large-cap equities to 8% of total assets, to be distributed to existing managers in that asset class. U.S. enhanced index equity was cut to 21% from 25%.