Illinois Teachers’ Retirement System, Springfield, on Thursday approved searches for a global tactical asset allocation manager, and one or more absolute-return managers that may be hedge fund or hedge fund-of-funds managers. Sizes of the new mandates were not disclosed, said Eva Goltermann, public information officer. TRS has a target allocation of 10%, or $3.9 billion, to GTAA and had invested $2.9 billion as of March 31. The absolute-return target is 2.5%, or $968 million, and $497 million has been invested as of March 31. Search criteria will be posted on the fund’s website, http://www.trs.illinois.gov, by July 15. Ms. Goltermann said manager selection is tentatively scheduled for the board’s Dec. 3-5 meeting. Funding will be from the plan’s ongoing commitment to these alternative asset classes.
The board also approved a plan to commit between $800 million and $1.2 billion to private equity in the fiscal year beginning July 1. The tactical investment plan is part of the $38.7 billion fund’s efforts to reach its 8% target private equity allocation. As of March 31, TRS had invested a total $2.2 billion, or 5.8%, in the asset class; outstanding commitments that have not been invested were not included in this figure.
TRS on Thursday also hired Boston Co. Asset Management to manage $240 million in active small- to midcap value domestic equities. Funding for the hire will be from rebalancing, Ms. Goltermann said. Also hired for $50 million mandates each were Ranger Investment Management for active small-cap growth domestic equities and Fiduciary Management Associates for active small-cap value domestic equities. Funding for the hires will come from the system’s $500 million emerging managers program.
