Illinois Teachers’ Retirement System started its search for an emerging markets equity manager to run 3%, or about $265 million in current dollars, of the pension fund’s $8.8 billion international equity portfolio.
Rather than issue a traditional RFP, the $44.5 billion Springfield-based pension fund instead asks active and passive emerging markets equity managers to submit strategy information as of Dec. 31 to eVestment’s database by Jan. 23.
TRS’ online external manager candidate profile is available on its website.
Interested firms should inform the pension fund’s investment consultant, RVK, of their interest by e-mail, TRS’ website said. RVK is responsible for identifying qualified firms for consideration by Chuck Handy, TRS’ international equity investment officer. RFIs may be sent to prospective managers, the online candidate profile indicated.
Finalists for the investment hire likely will be presented to TRS’ investment committee during its May 20 meeting.
During a Dec. 10 TRS investment committee meeting, Mr. Handy told trustees that a third active emerging markets equity manager was sought to further diversify TRS’ $1.6 billion emerging markets equity portfolio.
The new manager will join existing emerging markets managers AQR Capital Management, which will retain its existing 9.5% target allocation; Aberdeen Asset Management, which had its target allocation reduced to 5% from 6.8%; and passive emerging markets manager Northern Trust Asset Management which now manages a 3% allocation, a reduction of one percentage point.
Additional funding for the new emerging markets equity manager will come from rebalancing and cash from the November termination of American Century Investments, which had managed a 4% allocation.