Illinois State Board of Investment, Chicago, issued an RFP for firms to provide securities lending services for both U.S. and international securities.
The securities lending RFP covers the $15 billion in defined benefit assets of the total $18 billion in assets the board oversees, said William R. Atwood, ISBI executive director.
Credit Suisse, the incumbent, plans to leave the securities lending business June 30.
“This RFP is a direct result of that (decision),” Mr. Atwood said.
“I image we will have only one provider,” he said. ISBI executives would consider more than one, he said, but “I’m not sure there is sufficient scale to support two providers.”
ISBI has no plans “to make any changes to the program in terms of risk or return,” Mr. Atwood said.
ISBI earns about $2.5 million to $3.5 million a year through its securities lending program, Mr. Atwood said.
The RFP is available on ISBI’s website. Proposals are due Feb. 23. ISBI expects to make a decision March 20.
Marquette Associates, ISBI’s investment consultant, is assisting in the search.