Illinois State Board of Investment, Chicago, earned 14.6% in the year ended Sept. 30, exceeding its benchmark of 11.8%.
ISBI has the majority of its assets in equities. The Standard & Poor's 500 index climbed 17% in the 12 months through Sept. 30.
“Our portfolio is going to live or die by equity markets,” said William Atwood, executive director, whose board oversees three funds covering state employees, judges and General Assembly members. “Barring a calamity in December, our calendar year should be every bit as strong as our fiscal year number was.”
ISBI is the fiduciary for $13.9 billion in pension assets and $3.6 billion in defined contribution assets. It has 30% of its assets in domestic equity, 20% in international equity, 10% in hedged equity, and 5% in private equity, Mr. Atwood said in an interview.
“Over the long term, equities are the only place to be, whether it's securities or private equity or equity real estate,” Mr. Atwood said. “You have to be the owner of assets to create wealth.”