State Universities Retirement System of Illinois trustees made a policy decision to abandon active domestic large-cap equity management. The Champaign-based fund dropped SSBCiti Asset Management Group, which ran $275 million in large-cap value, and Fayez Sarofim, which ran $320 million in large-cap growth.
John R. Krimmel, chief investment officer for the $12 billion system, said that segment of the market is too efficient to outperform, based on the systems experience and many academic studies.
Trustees scaled back by $500 million a related Wilshire 4500 index portfolio managed by Barclays Global Investors, leaving it with $250 million.
All $1.095 billion from these portfolios was assigned to an existing Wilshire 5000 index fund managed by Northern Trust Quantitative Advisors, bringing it up to $3.3 billion.