Teachers' Retirement System of Illinois, Springfield, experienced problems in its transition to a new custodian, Northern Trust, said Robert Daniels, executive director for the $15 billion fund.
It's been ``a nightmare,'' he said. The system has been unable to close its books for its fiscal year ended June 30, he said, though he declined to elaborate on the problems.
``I think they bit off more than they could can chew'' in taking on the account from Harris Trust last spring, Mr. Daniels said. But Northern's relationship with Illinois Teachers is not at risk at this point, he said.
Northern Trust officials declined to discuss the situation beyond what they said was a joint statement by the firm and the system. The statement said there have been challenges in the transition and said Northern has ``dedicated additional resources to develop complete solutions to the issues we have faced.''
Separately, system board members voted to terminate the contract of Daiwa International Capital Management, which managed $130 million in Japan-only equities. Blairlogie Capital Management will manage the money on an interim basis, a spokesman said.
