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SURS Board Approves Private Real Estate Debt Search, Restructures Passive Management Search

April 24, 2017 - 10:29
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The State Universities Retirement System’s (SURS) Board of Trustees on Thursday approved a formal search for firms to provide non-core, private commercial real estate debt commingled fund investment management services. One or more investment managers will be hired to manage a total of $20-$60 million. The purpose of the allocation is to reduce total plan risk and diversify the portfolio. The RFP is available at www.surs.org

In other business before the board:

  • The passive investment manager search, initiated in February, was split into two phases due to the large number of responses submitted. Phase 1 is the completion of the TIPS mandate. Phase 2 entails identifying firms for the remaining passive management services, with finalist presentations taking place at the June 8, 2017, board meeting.

    RhumbLine Advisers was selected to provide passive TIPS investment management services. Approximately $675 in assets will be transferred from current managers PIMCO TIPS, Longfellow and New Century to RhumbLine.

  • U.S. equity manager Holland Capital Management was terminated. Assets will be transferred to existing hedge fund-of-fund portfolios Newport Monarch LLC (managed by PAAMCO) and the KKR Prisma Codlin Fund LLC. Additional funds will also be transferred from U.S. equity index accounts managed by Northern Trust and RhumbLine. In total, approximately $400 million will be allocated to reach the 5 percent strategic policy target for the hedged strategies portfolio.

 

For more information contact:
Beth Spencer, Communications Manager
State Universities Retirement System
1901 Fox Drive
Champaign, IL 61820
(217) 378-7512

SURS Board Approves Private Real Estate Debt Search, Restructures Passive Management Search