Illinois State Universities Retirement System, Champaign, hired Quantitative Services Group to evaluate how often its investment managers are trading on the Chicago Stock Exchange and with minority- and female-owned brokerage firms, said Dan M. Slack, executive director.
The $14.4 billion system hadn't been able to quantify Chicago Stock Exchange usage by its managers, and it had performed the minority- and female-owned brokerage analysis internally with the assistance of custodian Northern Trust and the system's managers, he said. System officials think minority- and female-owned brokerage use was being underreported, he said.
The fund's equity and fixed-income separate account managers, both domestic and international, are required to direct 5% to 25% of total commissions to minority- and female-owned brokerage firms, subject to best execution, depending on the asset class.
The fund will use the QSG analysis to report such usage to the state Legislature and governor's office under state directives.
