Illinois State Board of Investment on Friday authorized issuing an RFP in a search for a manager of non-U.S. fixed income to run $345 million, its first move into the asset class.
The allocation amounts to 3% of ISBI’s $11.6 billion fund. The board is making the move to diversify.
Funding would come from core fixed-income portfolios. It plans to terminate Amalgamated Bank, which manages $72 million; reduce the $870 million portfolio managed by Chicago Equity Partners; and possibly reduce ULLICO’s J for Jobs portfolio, which manages $139 million from the system. The reason for Amalgamated's termination couldn’t be learned.
Marquette Associates, the board’s investment consultant, will assist with the search.
A timeframe for issuing the RFP wasn’t immediately available.
The board plans to make a decision on any hiring in December.