Paul F. Roye, director of the SEC's division of investment management, formally announced he plans to leave in the coming weeks. No information was given on his plans.
Rumors of Mr. Roye's departure circulated in Washington for many months.
The SEC has not named a replacement, but Chairman William Donaldson, who had been informed of Mr. Roye's decision to leave nearly a year ago, may already have a shortlist of people to pick from, said an SEC spokesman.
Illinois fund hires 1, drops 1
The $34 billion Teachers' Retirement System of the State of Illinois hired Western Asset Management to manage $400 million in TIPS. Funding will come from reducing domestic fixed-income index funds run by State Street Global Advisors and Northern Trust Global Investments; further details were not available.
Separately, Capital Guardian was terminated as manager of a $679 million active international equity account for poor performance. The assets will go to an EAFE index fund managed by SSgA. Chuck Freadhoff, a Capital Guardian spokesman, said the company does not discuss its clients.
In accordance with investment policy, two managers were placed on watch when performance fell below established minimums: Ariel Capital, which manages $349 million in active domestic small-cap value; and Boston Partners, $741 million in active domestic large-cap value. Four other managers remain on watch.