Illinois Teachers' Retirement System's investment team reported investing or committing a total of $575 million to four new money managers since March 1 during an investment committee meeting Thursday.
GAM Systematic's Cantab Capital Partners and Kepos Capital were awarded $200 million each from the Springfield-based fund's $6.3 billion diversified strategies portfolio. The Cantab investment is in the CCP Core Macro Fund, and the Kepos investment is in the firm's Exotic Beta Fund.
Funding for the hires will come from the reduction of the pension fund's $796 million investment in the Standard Life Global Absolute Return Strategies Fund, a multistrategy hedge fund, also from within the diversifying strategies portfolio, said R. Stanley Rupnik, chief investment officer, detailing for trustees the discretionary investment moves made by staff between board meetings.
The $51.4 billion pension fund also committed $125 million to Beach Point Sangamon Fund, a private credit separate account managed by Beach Point Capital Management. Funding for the hire is coming from the plan's $10.4 billion global-fixed income portfolio.
It also committed $50 million to Harvest Partners Structured Capital Fund II from the fund's $6.3 billion private equity portfolio. The mezzanine fund will seek investment opportunities in U.S. sectors including business, consumer, health care and industrial services.
Citing unsatisfactory performance, Mr. Rupnik informed trustees that BNP Paribas Asset Management was terminated from a $500 million notional active currency overlay and a $60 million active large-cap international equity portfolio managed by Ativo Capital Management was also redeemed.
BNP Paribas spokeswoman Lucile Krusz did not respond to an email request for comment. Ativo spokeswoman Kelly O'Malley declined to comment in an email.
Also, TRS staff rebalanced a total of $350 million from various domestic and international public equity managers, moving $100 million to the Rhumbline Advisers S&P 500 index fund, bringing the total to $3.5 billion. Some $250 million was allocated to Arrowstreet Capital's quantitatively managed international equity strategy, bringing total assets to $768 million.
Separately, incumbent RVK was rehired as the fund's general investment consultant for a five-year contract beginning July 1, 2018. RVK has served the board since 2006.
Wilshire Consulting also was a finalist in the consultant search.
