US - The $23bn Illinois Teachers' Retirement System (TRS) is set to conduct an asset allocation study sometime in the new year, John Day, assistant executive director at the fund, said.
Earlier in the year, the Illinois TRS dropped Lincoln Capital Management from an $844m active US large cap mandate and gave the money to State Street Global Advisors (SSgA) to run in a passive S&P 500 index brief. Day said that one of the reasons for the asset allocation study was to determine where best to reallocate $700m of the money in SSgA’s S&P 500 mandate.
Day said that the fund’s work on the study so far had barely “scratched at the surface” and that one of the first tasks facing the new Illinois TRS consultant, Callan Associates, is to meet with the fund’s trustees and assist them with the study’s preliminary work at the next board meeting later this month. He declined to reveal any further details.
Callan was appointed at the start of the month as the fund’s new general investment consultant, fending off competition from Marquette Associates to land the one year contract with the Illinois TRS. Callan replaced Strategic Investment Solutions, which resigned in September.
Day also said that Dresdner RCM Global Investors would continue to be on the fund’s watch list until June 30, 2002. Dresdner, which manages a $536m active international equities mandate for the fund, is on the watch list due to personnel changes.
Until recently, the firm was on the watch list alongside Brinson Partners which were terminated earlier this month on performance grounds. Brinson had managed a $200m small cap value brief, which was removed and redistributed equally between two existing small cap value TRS managers, Ariel Capital Management and North Pointe Capital.
By Geoffrey Ho
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point