Illinois State Universities Retirement System, Champaign, issued an RFP for managers to run its $2.75 billion fixed-income portfolio.
The $12.6 billion system is looking for firms to run active and passive core and core-plus portfolios; managers may apply for more than one assignment. Currently, the system's fixed-income portfolio is run actively.
The system's existing managers can rebid. They are PIMCO, which manages $796 million in core plus and $298 million in TIPS; BlackRock, $253 million in core, $206 million in core plus and $265 million in enhanced index; WAMCO, $380 million in core plus; TCW Asset Management, $331 million in core plus; Progress Investment, $73 million in core; Pugh Capital Management, $47 million in core; Smith Graham, $46 million in core plus; Taplin Canida & Habacht, $32 million in core plus; and Davis Hamilton Jackson, $28 million in core, according to SURS reports.
The RFP is available at http://www.surs.org. Proposals are due March 22. The SURS board expects to decide on selections in June.
Ennis Knupp, the system's consultant, is assisting.
The board is restructuring its fixed-income allocation, in part, to deal with the economic environment following the market turbulence of the last two years, said Daniel L. Allen, chief investment officer. The system could allocate 20% to passive fixed income.