Illinois State Universities Retirement System, Champaign, plans to issue an RFP in March for a search for hedge funds-of-funds managers to run a total of up to $672 million, said Daniel L. Allen, chief investment officer of SURS.
“No decisions have been made at this time regarding the number of managers or styles,” Mr. Allen said in an e-mail, noting the RFP is still being developed. “It will be dependent on the responses received and the needs of SURS in building a diversified portfolio.”
The move would be SURS’ first into hedge funds, which oversees $16.7 billion in defined benefit assets and $1.5 billion in 401(a) assets. SURS authorized a 3% to 4% allocation of DB assets for the managers, the first for its overall 5% target allocation to hedge funds.
SURS’ investment committee could make recommendations Sept. 10, with a board decision on Sept. 11.
NEPC, the retirement system’s investment consultant, is assisting with the search.