Illinois Teachers' Retirement System, Springfield, will go back to the list of transition managers used in a 2012 search and will “refresh the RFIs” to find replacements for Credit Suisse Asset Management and J.P. Morgan Asset Management.
Within the last two weeks, the two managers separately informed the pension fund's staff that they are exiting the transition management business, R. Stanley Rupnik, chief investment officer, told trustees at an investment committee meeting on Wednesday.
The $39.6 billion pension fund must put its pool of transition managers out for bid every three years.
In May 2012, the board of trustees selected J.P. Morgan, Credit Suisse, State Street Bank, Citigroup and Loop Capital for transition management assignments.
A variety of regulations globally are pushing the banks out of transition management, Greg Turk, TRS' director of investments, told trustees during Wednesday's investment committee meeting.