Key Takeaways
- • Illinois State Universities Retirement System (SURS) consolidated its index fund lineup in its $4.9 billion 401(a) plan and $131 million 457 plan, moving to State Street Investment Management as sole manager.
- • The board voted at its Oct. 22 meeting to move to a single manager, primarily to save on fees, according to spokeswoman Lisa Storm Fink.
- • Previously BlackRock and State Street IM shared management of the white-label index funds; BlackRock managed the U.S. Large Cap ($572 million) and U.S. Small-Mid Cap ($86 million) funds as of June 30, 2025.
- • Implementation is targeted for March 2027, per a SURS news release.
Summary
The Illinois State Universities Retirement System, based in Champaign, has consolidated the index fund lineup across its $4.9 billion 401(a) plan and its $131 million 457 plan, designating State Street Investment Management as the sole manager. The system's board approved the move at its Oct. 22 meeting, with the primary motivation being fee savings, according to spokeswoman Lisa Storm Fink.
Before the change, BlackRock and State Street IM were the underlying managers of the plans' white-label index funds, according to SURS' most recent annual comprehensive financial report. As of June 30, 2025, BlackRock managed the SURS U.S. Large Cap Equity Index Fund ($572 million in plan assets) and the SURS U.S. Small-Mid Cap Equity Index Fund ($86 million). State Street IM managed the SURS U.S. Core Bond Index Fund ($61 million) and the SURS Non-U.S. Equity Index Fund ($52 million).
SURS has targeted March 2027 for implementation of the transition, according to a news release posted on the pension fund's website. The decision reflects a broader institutional trend toward consolidating mandates with fewer managers to reduce costs in defined contribution plan lineups.
Before the change, BlackRock and State Street IM were the underlying managers of the plans' white-label index funds, according to SURS' most recent annual comprehensive financial report. As of June 30, 2025, BlackRock managed the SURS U.S. Large Cap Equity Index Fund ($572 million in plan assets) and the SURS U.S. Small-Mid Cap Equity Index Fund ($86 million). State Street IM managed the SURS U.S. Core Bond Index Fund ($61 million) and the SURS Non-U.S. Equity Index Fund ($52 million).
SURS has targeted March 2027 for implementation of the transition, according to a news release posted on the pension fund's website. The decision reflects a broader institutional trend toward consolidating mandates with fewer managers to reduce costs in defined contribution plan lineups.
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