The Illinois Teachers Retirement System, Springfield, committed $100 million to a Term Asset-Backed Securities Loan Facility fund to be run by existing fixed-income manager PIMCO, one of several hires made by trustees at a meeting Thursday, confirmed TRS spokeswoman Eva Goltermann.
Board members of the $27.2 billion system also hired Frontier Capital Management to run about $181 million in small-cap growth equities. Funding will come from a temporary Russell 2500 growth optimized account and rebalancing, a news release from the fund said.
Trustees also increased the target size of Prudential Investment Managements fixed-income enhanced index fund to 20% of the systems fixed-income allocation, from 15%. As of March 31, the actual allocation was $5.3 billion, 19.4% of total fund assets.
Another $100 million was committed to Blackstone Capital Partners VI. The fund initially committed $50 million to the fund in October 2008.
New Century Advisors was elevated from the funds emerging manager program. As part of the transition, the fund increased its real-return global inflation-linked mandate to $50 million from $22 million. Funding will come from rebalancing.
The board also voted to add Maranon Mezzanine Fund LP to its emerging manager program and committed $25 million to the firm.
Separately, the boards executive search committee is expected to meet July 31 to interview executive search firms. A finalist will be selected in August and will launch a nationwide search for an executive director to replace Jon Bauman, who resigned in April. CIO Stan Rupnik will remain as acting executive director until a permanent replacement is found.