Illinois SURS picks 3 managers for options-writing strategies

Illinois State Universities Retirement System, Champaign, hired AQR Capital Management, Gladius Capital Management and Neuberger Berman to run options-writing strategies, the $18 billion pension fund announced in a news release Friday. .

AQR and Gladius will manage about $95 million each. Neuberger Berman will managed about $190 million.

An RFP for options-based strategy managers was also issued in October, with funding expected to come from hedge funds. Further information on the funding sources could not immediately be learned.

Rampart Investment Management Co. was also a finalist in that search.

Separately, SURS hired Pension Consulting Alliance as its general investment consultant, pending successful contract negotiations, the $18 billion pension fund announced in a news release Friday.

An RFP was released in October due to a policy that consulting services go out to bid every five years. Incumbent NEPC did rebid. Other firms that were considered were Meketa Investment Group and Aon Hewitt Investment Consulting.

Finally, the pension fund terminated BlueBay Asset Management as an emerging markets debt manager. The reason for the termination was not disclosed. Funds will be transferred to three existing emerging markets debt managers. Prudential Financial will receive about $112 million; Progress Investment Management Co., $50 million; and Colchester Global Investors, $30 million.

Before the transfer, Prudential ran about $206 million; Progress, $80 million; and Colchester, $112 million.

A SURS spokeswoman could not immediately be reached for additional information.