Illinois State Universities Retirement System, Champaign, hired S&P 500 index fund managers RhumbLine Advisers and Zenna Financial Servicesto manage $450 million and $50 million, respectively, said James M. Hacking, executive director. RhumbLine was also hired to manage $100 million in a Lehman Brothers Aggregate index fund.
The moves were partly in response to a call from the state Senate Select Committee on Public Pension Investments for public pension funds to increase their use of minority- and women-owned investment advisers. Zenna, as a start-up firm, was given a smaller assignment and placed in the $12.4 billion system's manager development program, targeting emerging minority- and women-owned firms.
Funding for the S&P 500 index funds could come from reducing U.S. equity index funds managed by Northern Trust Global Investments and Barclays Global Investors; Northern Trust runs $1.2 billion and BGI, $2.6 billion. Funding for the fixed-income fund could come from a $744 million fixed-income index fund run by BGI.
Ennis Knupp assisted.