Pensions

Illinois State Pension Board stops trying to beat the market

Abandonment of higher-charging, active managers comes amid a broader debate unfolding among big investors

Illinois State Pension Board stops trying to beat the market
Photo: iStockPhoto

The board overseeing 401(k)-style benefits for 52,000 Illinois state workers has terminated all money managers who try to handpick winners, a major embrace of low-cost funds that instead mimic the markets.

The Illinois State Board of Investment, in a seven-to-one vote on September 15, jettisoned mutual funds sold by T Rowe Price, Fidelity Investments, Invesco and four others.

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