The Illinois House could vote this week on a resolution that would direct the state auditor general to investigate investment choices made by the administrator of the College Illinois prepaid tuition program, a 529 plan with $1.25 billion in assets.
The resolution follows changes made April 1 that halts future investments by the Illinois Student Assistance Commission, the agency that administers the program, after questions were raised about the planned $50 million investment in Clipper Partners, a new multistrategy, multimanager fund of funds that would invest in alternative investments as well as stocks and bonds that has yet to post a track record.
ISAC board members unanimously approved the investment in February. College Illinois would have been the first investor in Clipper. The manager of the fund continues to look for seed money. The investment would have amounted to 4% of the tuition program’s total assets.
Illinois House Speaker Michael Madigan had planned to schedule a floor vote as early as this week on a resolution sponsored by both Democratic and Republican leaders directing the state auditor general to investigate investments as well as the workings of ISAC itself.
As of June 30, the plan, which backs the college savings of 55,000 students, was 31% underfunded.
Steve Daniels is a reporter for Crain's Chicago Business, a sister publication of Pensions & Investments.
