Illinois State Board of Investment, Chicago, plans to move $672 million from an S&P 500 index fund to an enhanced equity index fund, both managed by Amalgamated Bank, said William R. Atwood, executive director of the $11.9 billion board.
"We are hoping to achieve better performance," Mr. Atwood said. The change is expected to generate an additional 100 basis points, net of fees. "It seems to be a fair tradeoff to get a modest amount of (performance) enhancement with a minimal amount of additional risk," he said.
RhumbLine Advisers will continue to manage a $672 million S&P 500 index fund, which will be unaffected by the change.
Marquette Associates assisted.