Illinois Student Assistance Commission, Springfield, hired T. Rowe Price and State Street Global Advisors to manage about $70 million each in fixed income for the $1.1 billion College Illinois Trust Fund, the state’s prepaid tuition program, confirmed commission spokesman John Samuels.
T. Rowe Price will manage a core-plus fixed-income allocation, and SSgA will run passive core fixed income. The T. Rowe Price allocation will be funded from the termination of active core managers C.S. McKee, Piedmont Investment Advisors and Pugh Capital Management. All contracts are expiring at the end of June, and the trust is moving to one manager for core-plus fixed income, Mr. Samuels said in an e-mail. The funding source for the SSgA allocation was not immediately available.
The trust fund’s current fixed-income target is 20%, with a long-term target allocation of 25%. The new fixed-income allocation is 35% each passive core and active core-plus, and 30% intermediate duration, with one manager for each allocation.