Home > News > Asset Management Culture > Illinois SURS Seeks Fixed-Income Manager of Managers
Asset Management Culture

Illinois SURS Seeks Fixed-Income Manager of Managers

Strategies include global investment grade, high yield, global bank loans, emerging market debt.

By Michael Katz

The $18 billion Illinois State Universities Retirement System (SURS) is searching for a fixed-income manager of managers to provide diversified global credit strategies.

According to a SURS proposal request, the underlying portfolio strategies may include global investment grade, high yield, global bank loans, and emerging market debt segments. The underlying managers will need to fit the Illinois statute definition of minority, female, and persons with a disability-owned firms. Meketa Investment Group, SURS’ general investment consultant, will assist in the evaluation of respondents.

SURS will consider organization, resources, experience, investment team, commitment to diversity, performance, fees, and level of detail provided in the response to the request for proposal.

For consideration, firms need to have a minimum of $1 billion in  assets under management as of the end of 2019, although qualified women, minority, or disabled-owned businesses are exempt from this. They will be evaluated for further consideration at SURS’ discretion.

For more stories like this, sign up for the CIO Alert newsletter.

Applying firms must certify that the fees, costs, or pricing charged to SURS will not exceed the fees, costs, or pricing charged to any of its other clients for the same or similar level of services. Proposing firms also must be either registered as an investment adviser under the Investment Advisers Act of 1940 or a bank as defined in the Investment Advisers Act of 1940. Otherwise, the firm must factually explain how and why they claim to be exempt from registration.

Existing managers in the lineup include New Century Advisors, LM Capital Group, Integrity Fixed Income Management, RVX Asset Management, and GIA Partners, which manage a total of $350 million for the retirement system.

Proposals must be received by Feb.  7 and candidate interviews will be held later that month. SURS expects a decision by Mar. 12.

Related Stories:

Illinois SURS Gears Up for Unique Crisis-Prevention Allocation

Ohio Teachers Launches Search for Executive Director

Illinois’ New Governor Installs Two Pension Task Forces

Tags: , , , , , ,

Home > News > Pensions > Chilean President Pitches Reform in Wake of Deadly Pension Protests
Pensions

Chilean President Pitches Reform in Wake of Deadly Pension Protests

Under a new proposal, 6% in new contributions would be made by the country’s employers to sustain retired citizens above the poverty line.

By Steffan Navedo-Perez

Chilean President Sebastian Pinera is pitching a new plan to appeal to pension protesters’ demands throughout the country.

Residents have protested for months that their pensions defy normal living standards, and generally come up well below the minimum wage despite their lifelong  contributions to the pensions. Public demonstrations detesting the country’s pension have left scores of citizens dead, injured and arrested.

To help alleviate the situation, President Pinera proposed a 3% increase in contributions to the country’s pension system and Pension Fund Administrations (AFPs). He also urged a 3% boost towards pools of capital to improve pensions both now and in the future, called the Collective and Solidarity Fund.

“Within 6% we have opted for a [solution where] half goes to the individual account, to the pension savings of each worker to finance their own pension, the other half to a Collective and Solidarity fund to improve the pensions of the sectors more vulnerable,” the president said in announcing the proposal.

For more stories like this, sign up for the CIO Alert newsletter.

The aggregate 6% in new contributions would be sourced from the employers. If enacted, President Pinera promises pensioners now and in the future, would be sustained above an impoverished quality of life. Any pensioner who has contributed at least 30 years of payments will not receive benefits payments lower than the country’s minimum wage.

The president’s proposals also include several changes to the current AFP system. Under the proposal, fund managers would be mandated to refund part of the commissions charged in case of negative returns to the funds. They also will be prohibited from charging commissions for investments in national mutual funds. It also opens the door to new players such as non-profit entities, and facilities greater participation by affiliates.

According to President Pinera, these new stipulations are expected to increase pensions by approximately 30%.

Related articles:

Report: Chile Ranks as Top Latin American Destination Among Pension Managers

Chile Reports 13.2% Hike for Pension Funds in Q2

Chilean Candidate Proposes New Pension Plan

Tags: , , , , , ,

«