Illinois State Board of Investment, Chicago, placed Wellington Management on watch for underperformance for fixed-income and equity portfolios totaling $531 million in assets, said William R. Atwood, executive director.
ISBI put Wellington on watch for a $491 million international aggregate bond portfolio, managed for the $15.8 billion defined benefit plan, and for a $40 million investment in the Wellington Diversified Growth large-cap equity institutional mutual fund that is one of the investment choices in the $4.1 billion Illinois State Employees' Deferred Compensation Plan.
ISBI is fiduciary of the 457 plan, whose assets are part of the total $19.9 billion it oversees.
As part of the watch process, ISBI expects Wellington to make presentations on both portfolios to the board of trustees at its next meeting on Sept. 25.
“It's a coincidence we put both Wellington platforms on watch for performance,” said Mr. Atwood. “The platforms aren't related to each other.”
Under its policy, ISBI trustees have until next June to take action on Wellington — termination, retention or extension of the watch, Mr. Atwood said.
Marquette Associates, ISBI's investment consultant for both the DB and 457 plans, is assisting in the review.
Sara Sherman, Wellington spokeswoman, said the firm's officials have no comment.
