TRS Approves New Asset Allocation

Dec 13 2006 | 11:49am ET

The $39 billion Teachers' Retirement System of the State of Illinois has established initial allocations for absolute return and real return strategies as part of a new asset allocation plan approved by the TRS board of trustees this month.

The target allocation for absolute return investments is 2.5% of TRS’s total portfolio and 10% of its total fund for real return investments. The board also authorized a search for absolute return adviser/manager.

Under the new plan, target allocations for domestic equities and fixed-income fell from 41% to 30.5% and 23.0% to 15%, respectively. International equities and private equity, on the other hand, got boosts from 15% to 20% and 6% to 8%, respectively. The 14% target allocation for real estate investments will remain unchanged.

The board also made a $50 million to J.C. Flowers II, a buyout fund focused on the financial services sector and $100 million to Providence Equity Partners VI, a buyout fund focused on the media and telecommunications sectors. 

In addition, the board also hired Copper Rock Capital Partners to manage $50 million in small- and mid-cap growth domestic equities as part of TRS’s $500 million emerging managers program. To date, TRS has committed $125 million to the program.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.