Illinois State Board of Investment, Chicago, named SSgA and RhumbLine as finalists to manage $500 million in international equity index funds, said William R. Atwood, executive director of the $10 billion board.
SSgA already manages $250 million each in MSCI All-Country World ex-U.S. and MSCI Europe Australasia Far East index funds.
The board could either split the international passively managed portfolios between the two managers for each index fund or select one manager to run the entire amount, Mr. Atwood said.
“We are not dissatisfied with State Street,” Mr. Atwood said. The board wants to evaluate diversification and fee issues. Fees of both managers are comparable, he added.
Marquette Associates, the board's general investment consultant, is assisting with the search.
The board expects to make a decision Dec. 18.