Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 1650 - THE ADMINISTRATION AND OPERATION OF THE TEACHERS' RETIREMENT SYSTEM › Subpart P - COMPETITIVE SELECTION PROCEDURES FOR INVESTMENT SERVICES › Section 1650.3030 - Private Market and Commingled Fund Searches

Current through Register Vol. 48, No. 28, July 12, 2024
a) Funds and managers are opportunistically
				reviewed as they are available in the market based on the System's tactical
				plans and quality of the fund's or manager's team, process and
				strategy.
b) Each year, staff,
				working with the consultants, prepare tactical plans for private market
				investments to the Investment Committee. The annual tactical plans establish
				allocation targets for opportunistic investments within the private equity,
				real estate, and diversifying strategies asset classes for the upcoming year.
				Tactical plans also establish investment guidance for segments of the System's
				real assets and income asset classes.
c) Summaries of the System's annual tactical
				plans are posted on the TRS website (https://www.trsil.org) following Board
				approval. Investment focus for the fiscal year is specified in the annual
				tactical plan summaries for all interested funds and managers to
				review.
d) Funds and managers
				interested in participating in the System's alternative investment program and
				meeting the investment focus specified in the annual tactical plans may
				identify themselves to the System or its consultants via email, as instructed
				on the TRS website.
e) Over the
				course of the tactical plan period, staff reviews all information received from
				funds and managers that best position the System's investment portfolio for its
				intended strategic allocation targets.
f) Staff eliminates any investment
				opportunities that fail to meet the System's qualitative requirements and/or do
				not fit into a strategic allocation defined in the annual tactical
				plans.
g) Any fund or manager
				meeting the criteria set forth in the annual tactical plan and deemed to be a
				complementary fit to the portfolio may be invited to interview with staff in
				person or via conference call.
h)
				Following favorable interview results and staff research into the fund offering
				or manager, the fund or manager may be asked to complete the System's
				standardized comprehensive due diligence questionnaire.
i) Following continued favorable review,
				staff proceeds with formal due diligence meetings, typically at the candidate
				firm's offices. Any recommendation for due diligence meetings must be approved
				by the applicable staff Oversight Committee.
j) After due diligence is completed, staff
				initiates fee and contract negotiations with the finalist firm. All contracts
				and related documentation relative to hiring a fund or manager, including any
				open items relating to fee or contract terms, must be disclosed and negotiated
				in final form prior to final commitment.
k) Any finalist firm that successfully passes
				due diligence review and fee and contract negotiations is presented to the
				applicable Oversight Committee. With applicable Oversight Committee approval,
				staff is authorized to implement the recommendation.
l) At the next scheduled meeting of the
				Investment Committee following the commitment, staff will provide the Committee
				a report of commitment activity.