US - The Teachers' Retirement System of the State of Illinois (TRS) placed Barclays Global Investors (BGI) on watch for poor performance on a US$593m enhanced equity brief, according to a statement by TRS.
The board also outlined plans to invest up to $1.2bn in private equity in the coming year.
At yesterday's board meeting, trustees added BGI to the scheme's watch list due to performance and organizational reasons.
BGI's Alpha Tilts Fund with a 2% risk, the firm's enhanced indexing fund, underperformed the S&P 500 index by 144 basis points and 149 basis points in the one and three year periods, respectively, ending June 30.
Other managers being monitored for performance reasons as of yesterday's meeting include EARNEST Partners, which manages a $145m fixed income core-plus brief, and Emerald Advisers, which runs a $174m US small-cap growth equity mandate.
LSV Asset Management was removed from the watch list because of improved performance in its $114m domestic equity smid-cap value mandate.
Separately, the board said it would invest between $700m and $1.2bn in private equity this year in an effort to reach its 10% target allocation.
The $29bn scheme invested 7.8% of its assets, or $2.3bn, in private equity as of June 30. Within private equity, TRS earmarks 60% to 80% to buyouts; 10% to20% to venture capital and 5% to 20% for special situations.
The board also said it would continue to seek opportunistic investments in real estate as it works to hit its 14% target allocation. The current real estate exposure is 13.8%.
Staff at TRS will also be conducting searches for a global macro manager and a US active large-cap value manager. The mandate sizes have yet to be determined, but the requests for proposals will be posted on the scheme's website by the end of the third quarter, TRS said.
Finally, the pension fund trustees re-hired R.V. Kuhns as its general investment consultant and selected Hudepohl & Associates to conduct a search for a new executive director.
The former director, Jon Bauman, resigned in April after state pension reforms called for his departure later in the year. (Global Pensions; April 9, 2009)
The Centre for Social Justice is calling for the state pension age to be raised to 70 by 2028 and to 75 by 2035, a much faster rise than currently planned.
The High Court has blocked the £12bn transfer of Prudential's annuity book to Rothesay Life, citing the insurer's lack of "established reputation" and differing "capital management policies".
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