Illinois Firefighters' Pension Investment Fund, Lombard, hired RhumbLine Advisers and State Street Global Advisors to manage an initial total of up to $6.3 billion in passive portfolios.
RhumbLine will manage passive domestic equities, and SSGA will manage all remaining passive portfolios, confirmed William R. Atwood, executive director.
The pension fund's board issued an RFP in March. FPIF was created by a law signed in December 2019 by Illinois Gov. J.B. Pritzker consolidating about 296 downstate and suburban firefighter pension funds. The law calls for the transfer of investment authority for the municipal pension funds to the Firefighters' Pension Investment Fund no later than June 30, 2022. Initial estimates show the fund will consolidate about $6.3 billion in assets.
RhumbLine and SSGA will be assigned portfolios in initial allocations as assets are transferred until a permanent investment policy is established, Mr. Atwood confirmed. The current interim target allocation is 65% equities 30% fixed income and 5% real assets.
Investment consultant Marquette Associates assisted.