Illinois State Universities Retirement System, Champaign, issued separate RFPs for managers to run up to $400 million in notional value in equity index option overlay strategies and for managers to run $100 million for private equity emerging manager fund of funds.
SURS is looking for the overlay strategy “to generate incremental income from writing put and call options on SURS existing equity exposure,” the RFP said
SURS, which oversees $17.5 billion in defined benefit assets, has 23% of assets in U.S. equity, 19% in non-U.S. and 8% in global equity.
In the private equity search, SURS could hire more than one manager. It expects all the underlying funds in the portfolio to be managed by minority-, women- or disabled person-owned emerging managers, although the manager does not have to meet that criterion. It is aiming to move its 5.6% private equity allocation closer to its 6% target and bolster its use of emerging managers.
The RFPs are available on SURS’ website. Proposals for the private equity fund-of-funds search are due Dec. 14; for the overlay search, Dec. 18. Hiring decisions are expected on March 10.
Investment consultant NEPC is assisting in both searches.
