Representatives of Illinois Gov. Rod Blagojevich are seeking to influence how three state pension systems invest proceeds of the state's recent $10 billion pension obligation bond sale, suggesting they avoid putting the funds in their current asset allocation.
John B. Filan, director of the governor's office of management and budget, accompanied by Lawrence P. Morris, senior managing director of Mesirow Financial Services, Chicago, has had at least three joint meetings with staff members of the systems: the $22.7 billion Illinois Teachers' Retirement System, Springfield; the $8 billionIllinois State Board of Investment, Chicago, $1.55 billion; and the $8.7 billion Illinois State Universities Retirement System, Champaign.
Mr. Filan has suggested the systems should try to invest the proceeds in ways other than existing allocations, stressing preservation of capital in the midst of market uncertainty, according to SURS officials. In one of the private meetings in June with staff members of the systems at Mesirow's office, he mentioned hedge funds as one alternative, they said.
Mr. Filan declined to comment on his discussions.