Illinois State Board of Investment, Chicago, hired William Blair & Co. and Ashmore Group to run $125 million each in active emerging markets small-cap equities.
The $14 billion ISBI also hired Ariel Investments and Lombardia Capital Partners to manage $105 million and $70 million, respectively, in active international core equities.
Funding for Ariel will come from terminating Globeflex Capital, which managed $105 million in international small-cap equities, said William R. Atwood, ISBI executive director. Globeflex was terminated for performance, Mr. Atwood added. Marina Marrelli, Globeflex partner, CEO and client services and marketing director, couldn't be reached for comment.
Funding for the other new managers will come in part from rebalancing within ISBI's $2.8 billion international equity allocation, managed by State Street Global Advisors, which runs an MSCI All-Country World ex-U.S. index fund, and Franklin Templeton Investments and Vontobel Asset Management, which both run active large-cap strategies, Mr. Atwood said. None of these managers will be terminated, Mr. Atwood added. In addition, funding will come from capital gains received from some private equity and real estate investments as well as cash.
The hirings were the result of separate RFPs issued in the fall. For the international search, ISBI sought Illinois-certified investment managers that are minority- or female-owned or owned by a person with a disability.
ISBI made the moves to further diversify its international equity allocation, Mr. Atwood said.
Marquette Associates, ISBI's investment consultant, assisted in the changes.