Chicago Police pension fund set to search for international equity

Chicago Policemen's Annuity & Benefit Fund next month will begin searches for active international equity managers: a small-cap developed markets search and an emerging markets search, confirmed Samuel Kunz, chief investment officer of the $3 billion fund, in an e-mail.

The number of managers and the size of each assignment have not been determined, Mr. Kunz wrote. In early May, Mr. Kunz told Pensions & Investments that the small-cap international mandate likely would total $125 million and the emerging markets mandate, $187 million.

The RFPs will be posted on the pension fund's website. Funding will come mainly from reducing other manager portfolios in the pension fund's $622 million international equity allocation.

Separately, the police fund's board of trustees at its Thursday board meeting decided to retain incumbent Ariel Investments and add Fisher Investments to split an existing $90 million allocation to active U.S. small-cap to midcap value equity, Mr. Kunz said. Ariel had previously run the full $90 million.

“Sizing has to be determined because Ariel Investments, the incumbent, was not terminated,” Mr. Kunz wrote in his e-mail.

Ariel and Fisher were among five finalists for the assignment, along with Diamond Hill Capital Management, Integrity Asset Management and Lombardia Capital Partners. An RFP was issued in March.