According to an article in Morningstar, the Illinois State pension plan has fired all active managers and will make no further effort to “beat the market.”
The Illinois State Board of Investment terminated its relationship with T. Rowe Price, Fidelity, Invest and four other fund families. As a consequence, $2.8 billion of assets in the $4 billion fund will now be managed passively by Vanguard and Northern Trust.
Outside management fees will be reduced from more than $10 million to $1 million.
I have one question for the Board: What took you so long?
Pension plans typically underperform
On July 18, read more >>>