Illinois State Universities Retirement System, Champaign, hired Parametric Clifton to manage a notional exposure of between $300 million and $400 million in a cash overlay, while committing $150 million total to two other managers for alternatives.
Russell Investments was the other finalist for the cash overlay, said Daniel L. Allen, chief investment officer, in an e-mail.
SURS oversees $15.9 billion in defined benefit assets.
Funding for the cash overlay to enhance management of asset allocation exposures will come from cash.
NEPC, SURS' investment consultant, assisted.
In addition, SURS committed $100 million to Adams Street 2014 Global Fund, a private equity fund of funds managed by Adams Street Partners, and $50 million to the Macquarie Infrastructure Partners III fund, managed by Macquarie Group.