Illinois State Board of Investment, Chicago, issued two separate RFPs to manage a total of up to $2.8 billion.
ISBI is searching for a passive international government bond manager to run $489.3 million for the $15.2 billion defined benefit plan and a target-date funds manager for the Illinois State Employees’ 457 Deferred Compensation Plan, whose $4.1 billion in assets ISBI oversees.
Funding for the bond search will come from terminating Wellington Management, which manages the $489.3 million in an active international aggregate bond portfolio. Wellington was terminated last month and will continue to manage the portfolio until a new manager is hired. Proposals for the fixed-income RFP are due Oct. 19. A hiring decision could be made Nov. 6.
T. Rowe Price Group is the current manager of the 457 plan’s target-date funds, which total $2.3 billion, or 56% of the 457 plan’s assets. It is invited to rebid.
Because target-date assets increased from 11.9% of the plan’s assets as a result of a re-enrollment of all participants in April, ISBI issued the RFP to gauge the market to ensure it has the best target-date fund manager, said William R. Atwood, executive director.
Proposals are due Nov. 6. A hiring decision could be made March 16.
Both RFPs are available on ISBI’s website.
Marquette Associates is assisting in both searches.