Illinois' Levine: We're Removing Honey Pot From Politics

The Illinois State Board of Investment has shifted its 401K plan to a passive index fund to simplify its portfolio and reduce management fees. The board aims to depoliticize the pension system and improve investment performance. Despite political gridlock, the board has made significant changes to ease trustees' responsibilities. Constitutional protections limit changes to pension benefits, but the board focuses on responsible investment management. The strategy includes a mix of passive and active management, with a target return of 7%. Cost-cutting measures have been implemented to improve performance.

What is the role of active management in the investment strategy of the Illinois State Board of Investment?

What is the target return set by the Illinois State Board of Investment?

How has the Illinois State Board of Investment managed costs to improve performance?