Illinois State Board of Investment, Chicago, is reviewing its asset allocation for potential changes to reduce volatility after lowering its assumed rate of return on investments to 7.25%, said William R. Atwood, executive director.
ISBI oversees $14.8 billion in assets, including the $14.1 billion of the Illinois State Employees’ Retirement System, Springfield, which lowered its assumed rate from 7.75%.
“I would anticipate some adjustments will be made to the asset allocation model,” Mr. Atwood said.
“That lowering of the assumption indicated to us a direction to reduce volatility,” he said.
Marquette Associates, ISBI’s investment consultant, is assisting with the review. ISBI staff and Marquette consultants will report to the board Sept. 26, Mr. Atwood said.
ISBI’s actual asset allocation is 30.7% U.S. equities, 22.1% fixed income, 20.3% international equities, 9.8% hedge funds of funds, 9.5% real estate, 4.3% private equity and 3.3% real assets.