Illinois State Universities Retirement System, Champaign, plans to issue an RFP later this month for managers of portfolio overlay strategies to run a notional value of up to $400 million, said Daniel L. Allen, chief investment officer, in an e-mail.
“The overlay strategy is anticipated to earn incremental income while providing equity exposure using option strategies,” Mr. Allen said. “The strategy will be further identified as determined by respondents to the (RFP) and potential market opportunities.”
“The strategy is designed to assist in achieving board-approved allocation targets while continuing to increase diversification to the SURS investment program,” Mr. Allen said.
The SURS board, which oversees $16.3 billion in defined benefit assets and $1.5 billion in defined contribution 401(a) assets, is considering an allocation of between $250 million and $400 million in notional value to the strategy.
The RFP will be posted on SURS’ website.
