Illinois State Board of Investment, Chicago, later today may name its first investment consultant, according to William Atwood, executive director. The $8 billion system is interviewing finalists Ennis Knupp, Marquette Associates and Stratford Advisory Group. The new consultant will undertake an asset allocation study.
Also, the board today voted to park $1.55 billion of expected pension obligation bond proceeds in index funds with Northern Trust Global Investments, pending the result of the asset allocation study. The firm already manages $1.5 billion in domestic equity index funds for the board. The proceeds are expected early next month. The money will be managed as follows: 54% will go in a Russell 3000 fund; 31% in a Lehman Brothers Aggregate index fund; and 15% in an MSCI EAFE fund.