Illinois State Board of Investments Seeking Emerging Intermediate Bond Managers


The $10.45 billion Illinois State Board of Investment has authorized a search for an emerging intermediate bond manager to likely handle about $100 million, Executive Director Bill Atwood said. The search will be handled by general investment consultant Marquette Associates and an RFP is expected to be posted on the plan's Web site (www.isbi.illinois.gov/RFP.htm) soon.

Atwood said the plan currently has allocations with emerging intermediate bond managers LM Capital Group and Chicago Equity Partners but wants to add another manager because the plan currently makes up a significant portion of the assets of the two incumbents and would like to reduce its exposure. Atwood said the reductions are not performance related.

The exact allocation size has not been determined at this time, however the loose number is about $100 million. Ideally, the plan would like to not be more than 10% of any potential manager's strategy assets.

LM Capital manages $385 million in intermediate bonds for the plan and Chicago Equity Partners manages $384 million in intermediate bonds and another $555 million in a core mandate that is being converted to the intermediate portfolio. The plan hopes to have the search wrapped up by its Sept. 24 board meeting.

Interested managers are encouraged to contact Johara El-Harazin, portfolio manager for emerging and minority managers at the plan, via e-mail at johara.elharazin@illinois.gov.

Additionally, the plan is searching for women- and minority-owned transition managers, Atwood said. An RFP will also be posted on the plan's Web site.


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