After active managers fell in lockstep with their benchmarks and all of the major indexes in 2008, many institutional investors are paring back their investments with active managers in favor of low-cost passive alternatives, The Wall Street Journal reports.

“Active managers have not given us the added performance in a down market that we hoped for,” said Bill Atwood, executive director of the Illinois State Board of Investment, who recently moved $400 million of the state’s $9 billion portfolio into index funds. “Now that we think we’re close to the bottom, we feel we can access the upside just as well with index managers,” he said.

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