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Illinois Eyes Changes To Int’l Lineup

The $11 billion Illinois State Board of Investment will scour the international large-cap core equity universe to see if it can achieve better returns with other managers. It has $775 million in international equity with UBS Global Asset Management, Walter Scott & Partners and Franklin Templeton Investments, which in aggregate underperformed the MSCI World ex-U.S. Index by 1.5% for the year ending Oct. 31.

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The $11 billion Illinois State Board of Investment will scour the international large-cap core equity universe to see if it can achieve better returns with other managers. It has $775 million in international equity with UBS Global Asset Management, Walter Scott & Partners and Franklin Templeton Investments, which in aggregate underperformed the MSCI World ex-U.S. Index by 1.5% for the year ending Oct. 31. “All three of the managers could be retained or terminated,” said Bill Atwood, executive director. “We will be looking at ways to get above the bogey.” Even if the managers are retained, the fund could hire additional international managers, he added.

Marquette Associates recommended at the Dec. 16 board meeting that an RFP be sent out to see how the incumbents stack up to other players. The search will begin early next year and decisions will be made at a March 24 board meeting.

As of Oct. 31, the managers had a 12-month aggregate return of 17%, compared to 18.5% for the benchmark.