Illinois State Board of Investment, Chicago, plans to issue an RFP for a target-date funds manager for the $4.1 billion Illinois State Employees' 457 Deferred Compensation Plan, said William R. Atwood, ISBI executive director.
ISBI which also oversees $15.2 billion in defined benefit assets, plans to post the RFP Oct. 5 on its website.
Incumbent T. Rowe Price can rebid, Mr. Atwood said. T. Rowe Price's target-date funds hold 62% of the plan's assets.
A re-enrollment of all the plan's participants in April “dramatically increased the utilization of target-date funds” by participants in the plan, Mr. Atwood said. Before the re-enrollment, participants had in aggregate 11.9% of their assets in the T. Rowe Price target-date funds.
“We have no complaints with T. Rowe Price as a provider,” Mr. Atwood said. “They've done a terrific job. But just out of prudence we want to make sure we have the best target-date fund manager we can identify.”
Marquette Associates, ISBI's investment consultant, will assist in the search.
The board expects to make a decision in March.