US - The Illinois Teachers' Retirement System has doled out $825m to new and existing managers and approved searches for up to six additional hedge fund managers and transition managers.
In a board meeting on Friday, trustees of the $37.5bn pension fund gave an additional $150m each to absolute return fund managers BlueMountain Capital Management, Claren Road Asset Management and Carlson Capital. Each currently runs $50m. The allocation is meant to help grow the $1.49bn absolute return portfolio to 8% of total assets. Trustees also plan to invest in two to three new investments per year in 2012 and 2013.
Trustees also approved the issuance of a request for proposal for transition management services. The board expects to vote on a candidate in February 2012.
The board also approved three new investments in its private equity portfolio.
TRS invested $200m with Leonard Green & Partners, which focuses on consumer-related businesses and gave $30m each to Longitude Capital Management and TrustBridge Partners. Longitude invests in biotechnology firms and medical device manufacturers and TrustBridge invests in China-based industries focussing on the internet and healthcare sectors.
TRS also invested $75m with PIMCO for a securities mandate.
TRS also invested $25m with real estate manager CityView and $15m with Flintlock Commodity Opportunity Partners, both as part of the fund's emerging managers programme.
Meanwhile, TRS approved the state contribution of $2.7bn for fiscal year 2013. The amount is $297m higher than this year's contribution of $2.4bn - the bulk of which will go to its members, TRS spokesperson Dave Urbanek told Global Pensions.
The contribution is required by state law to fund the scheme during the next fiscal year as well as its unfunded liability which currently stands at $43.5bn.
Under the state law, the fund is required to confirm an amount for the state contribution by November and the state is expected pay the total before the end of the fiscal year.
TRS' unfunded liability increased to 53.5% during the fiscal year of 2011 from 51.6% at the end of June 2010 due to the ongoing affects of the economic downturn from 2008 to 2009, said the fund.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.