Trustees for the $14 billion Illinois Teachers' Retirement System, Springfield, terminated two managers.
Jones Lang Wootton Realty Advisors managed about $353 million in real estate for the fund; Smith Barney Capital Management managed about $130 million in international fixed income.
JLW's allocation will be split among three existing managers: K/B Realty Advisors will manage $72 million in industrial and office; Capital Associates, about $103 million in apartment properties; and Commonwealth Realty Advisors, about $178 million in retail properties, according to Matthew Evans, investment officer. Assets run by Smith Barney will be split between existing international equity manager Pyrford International and an in-house synthetic EAFE program.
CIO Don Nesbitt said the fund was above its targeted allocation to international bonds, hence the move to international equities.
Earlier, Illinois Teachers terminated MPI Investment Management for a $5 million equity account and Cordillera Asset Management for a $25 million equity account, according to system officials.