State of Illinois Pulls $2.4 Billion From Active Managers

The video discusses the Illinois State Board of Investment's strategy to shift from active to passive investments, highlighting the benefits of passive investing such as better performance and lower costs. It addresses market trends, political influences, and the impact of political changes on investment strategies.

What is one of the main reasons the Illinois State Board of Investment shifted to passive investing?

• To support local businesses

• To follow a government mandate

• To increase political influence

• To reduce investment management fees

What percentage of active managers do index funds typically outperform?

• 60%

• 70%

• 80%

• 50%

Why do some believe that the time of the active manager is returning?

• Because of changing market correlations

• Due to technological advancements

• Because of increased market volatility

• Due to new government regulations

What is a political advantage of using index funds according to the speaker?

• They reduce the risk of political meddling

• They increase political transparency

• They allow for more political donations

• They enhance political campaigns

How has the election of Donald Trump affected the investment strategy of the Illinois State Board of Investment?

• It has increased the focus on active management

• It has not changed the investment strategy

• It has led to a complete overhaul of strategies

• It has decreased the use of index funds