Illinois Teachers Retirement Fund Plans 2.5% Allocation To Hedge Funds

The Illinois Teachers’ Retirement System plans to make a move into hedge funds as part of its investment strategy shift to boost returns and dig the system out of a funding shortfall, according to the Chicago Tribune. The Teachers’ Retirement System has not picked its hedge fund managers, but has already said it would invest in hedge funds over one to three years and limit its exposure to 2.5%. The Tribune reports that the teachers’ system is 62% funded and was forced to liquidate $1.2 billion in assets last year to pay benefits rather than reinvesting the proceeds.