The Illinois State Board of Investment, Chicago, parked $530 million in equity index funds managed by its custodian, Northern Trust, pending a decision on how to invest the assets, said Jane Patterson, executive director.
The board is considering a permanent passive assignment, not necessarily at Northern, but no decisions have been made, she said. The board's current long-term mandate does not include passive investments.
Assets came from the termination of two large-cap managers, Newbold's Asset Management and Cooke & Bieler, Ms. Patterson said.
The board also terminated two emerging managers, Woodford Gayed and Valenzuela Capital, both of which managed about $17 million in equities. The money managed by the two firms was shifted to an existing emerging manager, Sloate, Weisman, Murray, which now runs $50 million for the pension fund.