Illinois State Board of Investment, Chicago, on Friday approved a search for a midcap growth index fund manager to run $445 million.
The board, which oversees $11.6 billion, hasn’t set a time frame for issuing the RFP. It plans to make a decision on hiring in September.
Funding will come from terminating RhumbLine Advisers, which runs the money in a large-cap growth index fund. The board wants to move into a midcap fund. The changes are being made for diversification. RhumbLine can rebid.
Marquette Associates, the board’s investment consultant, will assist with the search.
Separately, the board terminated Profit Investment Management, which runs $159 million in active domestic large-cap growth equities, for performance. The money will be transferred to an S&P 500 index fund managed by RhumbLine, raising its assignment to $830 million.
Eugene A. Profit, president of Profit Investment Management, couldn’t be reached for comment.
Marquette recommended the changes.