Illinois Teachers' Retirement System, Springfield, hired a new hedge fund consultant and invested or committed a total of $892.5 million to 10 investment strategies in the fund's global income, private equity and diversifying strategies portfolios.
At a board meeting Tuesday, trustees of the $51.5 billion fund awarded a five-year contract to alternative investment consultant Aksia, effective Jan. 1. The majority of the $5.9 billion diversifying strategies portfolio is managed in hedge funds, with the remainder in alternative risk premium and risk parity strategies.
Aksia was hired in August to be the fund's first private credit consultant.
Incumbent consultant Albourne Partners was a finalist for the contract, along with Aberdeen Standard Investments.
Investment staff — who have discretion to select managers — reported to trustees that a total of $637.5 million was invested or committed to six managers from the fund's $10.7 billion global fixed-income portfolio.
Existing manager PGIM was awarded a $137.5 million commitment to an actively managed emerging market debt separate account for a total commitment/investment of $1.537 billion.
AllianceBernstein, a new manager, received a $125 million commitment for an actively managed emerging market debt separate account.
Three existing managers received commitments of $100 million each for investment in private credit strategies, meeting documents showed:
LCM Partners' assets under management for TRS increased to $155 million including a commitment to LCM SOLO III, a direct lending fund.
J.P. Morgan Asset Management's assets managed for TRS rose to $1.8 billion with the addition of a commitment to J.P. Morgan Global Transport Income Fund, a debt fund.
Pacific Investment Management Co.'s total assets managed for TRS rose to $3 billion with a commitment to PIMCO Commercial Real Estate Debt Fund.
Varde Partners received a $75 million commitment to Varde Private Debt Opportunities Fund, its first investment from TRS.
Commitments totaling $175 million were made to three private equity managers from the fund's $6.8 billion private equity portfolio, meeting materials showed.
New manager Alvarez & Marsal Capital Advisors was allotted a $75 million commitment to A&M Capital Partners II, which will which focus on control-oriented investments in middle-market businesses.
Ridgemont Partners Management, another new manager for the fund, received a $50 million commitment to Ridgemont Equity Partners III, a buyout fund.
Existing manager Silver Lake Management Co. was awarded a $50 million commitment to Silver Lake Alpine Associates for a total of $322 million managed for the teachers' defined benefit plan.
From the fund's diversifying strategies portfolio, investment officers invested $80 million with credit hedge manager Tilden Park Capital Management, bringing assets managed for the pension fund to $117 million.
Managed futures manager ISAM was terminated as a manager for the diversifying portfolio. The reason for redeeming the $126.3 million investment was not provided in meeting materials.
Separately, preliminary net returns of the fund were positive for reported periods ended Sept. 30, the first quarter of TRS' fiscal year, said R. Stanley Rupnik, chief investment officer, during an investment committee meeting Monday.
The defined benefit plan returned 1.6% in the three months ended Sept. 30, lagging its benchmark of 2.8%, and 7.1% for the year, vs. 7.8%. Longer term, the three-year annualized return was 9.1% (benchmark, 9.8%); five years, 7.7% (8%); 10 years, 7.5% (7.9%); 20 years, 6.9% (6.8%); and 30 years, 8.4% (8.6%).
