Illinois State Board of Investment, Chicago, will launch a search this month for a passive domestic equity manager to run about $4.8 billion, said Johara Farhadieh, executive director and chief investment officer.
The board, which oversees $25.7 billion in defined benefit plan assets on behalf of three state retirement systems, will issue the RFP during the week of Oct. 18 as a result of its decision to consolidate three passive domestic equity portfolios into a single portfolio replicating the Russell 3000 index, Ms. Farhadieh said.
She did not name the manager of the three portfolios, but ISBI hired BlackRock in 2018 as a strategic partner to manage a total then of $8.6 billion in passive portfolios. She did say all managers are invited to bid for the services.
The RFP will be posted on ISBI's website. Ms. Farhadieh said the due date and selection date have yet to be determined.
General investment consultant Meketa Investment Group will assist with the search.
Separately, the board at its meeting Wednesday hired Empower Retirement as record keeper of the state's $5.5 billion 457 plan. ISBI issued an RFP in May. Voya Financial was the other finalist.
T. Rowe Price Group currently provides record-keeping services and was eligible to rebid. Ms. Farhadieh did not say whether the firm did so.
Defined contribution consultant RVK assisted.
Also on Wednesday, the board rehired Northern Trust as the custodian of the defined benefit plan assets. ISBI issued an RFP in June, and State Street Corp. was the other finalist.
Meketa assisted with the custodian search.
ISBI oversees the investment management of the Illinois State Employees' Retirement System, General Assembly Retirement System and Judges' Retirement System.