Illinois State Board of Investment staff will ask the board to place BlackRock, which manages $442 million in core fixed income for the $11.4 billion Chicago-based fund, on watch because of organizational and other concerns with the firm's deal with Merrill Lynch, said William Atwood, executive director of the fund.
"We will advise the board at the March 24 meeting to examine the relationship with them and Merrill Lynch, and what effect it will have for our portfolio and our relationship," Mr. Atwood said.
BlackRock agreed to merge with Merrill Lynch Investment Managers to create a new company, of which Merrill Lynch will get a 49.8% share.
