(The following is a reformatted version of a press release
issued by the Illinois Teachers’ Retirement System and received
via electronic mail. The release was confirmed by the sender.)
For Immediate Release
February 22, 2013
TRS HIRES TWO ADVISORS TO AID REAL ESTATE PORTFOLIO
SPRINGFIELD, IL - The Teachers’ Retirement System Board of
Trustees today engaged ORG Portfolio Management of Cleveland,
Ohio and Real Asset Portfolio Management of Portland, Oregon to
advise the System in the creation of a co-investment program
within the $4.6 billion TRS Real Estate portfolio.
“These two firms will join our existing pool of investment
advisors to help us identify, investigate and finalize co-investment opportunities that will enhance the System’s
investment program on behalf of our members,” said TRS Executive
Director Dick Ingram. “TRS is expanding its existing co-investment program in order to capitalize on opportunities that
exist in the market.”
In its co-investment program, TRS will be able to make direct
investments in a property to compliment an existing investment
in the same property that was made as part of a pooled
allocation to a multi-property real estate fund. TRS already
makes co-investments within its $4.3 billion Private Equity
portfolio that add direct investments to existing commitments
made to private equity funds that contain several companies.
In other action during the Board’s regularly scheduled February
meeting the trustees:
• Hired Stout Risius Ross, Inc. of Detroit, Michigan to become
part of the System’s pool of advisors for private equity co-investment opportunities.
• Authorized a search for an investment manager to administer an
allocation from the System’s $6.4 billion Fixed Income portfolio
for corporate bonds in emerging markets around the world. The
size of the initial allocation has not yet been determined.
• Committed $250 million within the Private Equity portfolio to
The Carlyle Group of Washington, D.C. for investments in
companies in all sectors of the economy, including the aerospace
and defense industry, government services, retail, health care,
heavy industry, transportation, technology, telecommunications
and media. TRS currently has $725.9 million invested with The
Carlyle Group from the private equity, real estate and absolute
• Committed $125 million within the Fixed Income portfolio to
the Pacific Investment Management Company of Newport Beach,
California for investments in bonds that help financial
institutions in the United States and foreign countries where
the economy and real estate markets are poised for growth.
Currently, PIMCO administers $2.57 billion in TRS assets in the
Fixed Income and Real Return portfolios.
• Committed an additional $50 million within the Fixed Income
portfolio to Oaktree Capital Management of Los Angeles,
California for investments in financial institutions, bringing
the total System commitment in this individual investment to
$125 million. Currently, Oaktree administers a total of $88.8
million in TRS assets.
• Hired Ativo Capital Management of Chicago within the System’s
Emerging Manager Program and committed $25 million for
investments in international equities.
• Approved changes to the TRS Watch List:
o Addition of Franklin Templeton Fixed Income Group of San
Mateo, California, which manages $462 million in TRS assets
within the Fixed Income portfolio.
o Addition of Grantham, Mayo, Van Otterloo and Company of
Boston, Massachusetts, which manages $710 million in TRS assets
within the International Equity portfolio.
o Addition of Trilogy Global Advisors of New York, New York,
which manages $389 million in TRS assets within the
International Equity portfolio.
o Termination of a $131.4 million domestic equity small-to-mid-cap value strategy administered by Boston Company Asset
Management of Boston, Massachusetts. Boston Company continues to
administer a separate small-to-mid-cap strategy containing
$289.4 million in domestic equity assets.
• As approved by the TRS Board, the current Watch List is
o Franklin Templeton Fixed Income Group of San Mateo,
California, which manages $462 million in TRS assets within the
Fixed Income portfolio.
o Frontier Capital Management of Boston, Massachusetts, which
manages $213 million in the Domestic Equity portfolio.
o Grantham, Mayo, Van Otterloo and Company of Boston
Massachusetts, which manages $710 million in TRS assets within
the International Equity portfolio.
o Levin Capital Management of New York, New York, which manages
$547 million in the Domestic Equity portfolio.
o Trilogy Global Advisors of New York, New York, which manages
$389 million in TRS assets within the International Equity
About Teachers’ Retirement System
The Teachers’ Retirement System of the State of Illinois is the
39th largest pension system in the United States, and provides
retirement, disability and survivor benefits to teachers,
administrators and other public school personnel employed
outside of Chicago. The System serves 366,000 members and had
assets of $38.1 billion as of December 31, 2012.
Contact: Dave Urbanek
Public Information Officer
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