Illinois State Universities Retirement System, Champaign, issued an RFP in 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.
It is the first allocation to hedge funds by SURS, which oversees $16.7 billion in defined benefit assets. SURS could hire more than one manager to manage a total allocation of 3% to 4%. Funding will come as part of SURS' reduction of its domestic equity allocation to 23% from 32%.
SURS, which is seeking managers of diversified multistrategy hedge funds of funds, aims to reduce total plan risk and increase diversification through the use of hedge fund of funds.
The RFP is available on SURS' website. Proposals are due April 9. The SURS board could make a decision Oct. 22.
NEPC, the fund's investment consultant, is assisting with the search.