Illinois State Board of Investment, Chicago, plans separate searches for managers of commingled real estate funds, one for $150 million in core and the other for $100 million in non-core, said William R. Atwood, executive director of the $11.6 billion fund.
The board plans to issue an RFP in July for a commingled core manager and expects to make a decision on a manager in September. For a non-core manager, the board expects to issue an RFP in fall and make a decision in December.
“The expectation is to hire one manager” in each search, Mr. Atwood said.
Funding for both searches will come from fixed income by reducing managers' portfolios, Mr. Atwood said. None will be terminated.
The board is conducting the searches in part to get better liquidity in income-producing real estate, he said.
“We want to get money out quickly,” Mr. Atwood said. “We are trying to reduce tracking error, reduce volatility and get money deployed as quickly as we can. By going to a commingled fund, we think it's the best way to achieve that.”
Marquette Associates, the board's general investment consultant, and Townsend Group, its real estate consultant, will assist, Mr. Atwood said.
The RFPs will be posted on ISBI's website, www2.illinois.gov/isbi..