Illinois Police Officers' Pension Investment Fund, Naperville, is searching for passive money managers to run a total of up to $9 billion.
The fund’s board of trustees issued an RFP for passive money managers because it anticipates predominately using passive investment strategies during the initial conversion to the new consolidated fund, confirmed Kent F. Custer, chief investment officer, in an email.
The Police Officers' Pension Investment Fund was created by a law signed in December 2019 by Illinois Gov. J.B. Pritzker consolidating 649 downstate and suburban police and fire pension plans into two new pension funds. The other pension fund is the Illinois Firefighters' Pension Investment Fund, Lombard.
The police officers' fund will manage an estimated $9 billion of consolidated municipal police pension fund assets. The transfer of investment authority for the municipal pension funds' assets to the Police Officers' Pension Investment Fund will occur no later than June 30, 2022.
The RFP notes that the passive investment strategies will eventually be used to a lesser extent as other diversified strategies will be included in the consolidated fund once an asset allocation is established.
The fund is seeking proposals from managers of passive equities (domestic large-cap and small cap, international developed, international developed small cap and emerging markets), core fixed income, short-term government/credit fixed income, high yield corporate credit, emerging markets debt and real estate investment trusts.
Investment consultant Verus Advisory is assisting.
The RFP is available on the fund's website. Proposals are due at 5 p.m. CDT on Aug. 30. A review is slated for Oct. 8. A selection date has yet to be determined.
