Chicago teachers plan preps further real estate searches, commits to GreenOak

Chicago Public School Teachers' Pension & Retirement Fund plans to issue additional real estate RFPs in the remainder of fiscal year 2017 and fiscal year 2018, which starts July 1, said Angela Miller-May, director of investments, in an email.

Ms. Miller-May said that the pension fund will continue to look for qualified minority-, women-, or disabled person-owned real estate managers, along with real estate debt, non-core and opportunistic managers to help the pension fund maintain its 9% real estate target and 2% infrastructure target. Commitment sizes are expected to be $25 million on average.

Interested firms can contact the pension fund, Ms. Miller-May said.

Separately, at its Thursday board meeting, the $9.8 billion pension fund committed $25 million to GreenOak U.S. III, completing its search for non-core real estate managers certified as a minority-, women-, or disabled person-owned business enterprises, which was launched on Aug. 15.

The Oak Street Real Estate Capital Fund IV was already approved for a $25 million commitment in November as a result of that search.

Also on Thursday, the pension fund removed international small-cap manager William Blair & Co. from its watchlist. The international small-cap strategy, which the pension fund had $164 million invested as of Dec. 31, had been put on watch because of short-term performance concerns.

It was removed in light of a new watchlist policy that evaluates a managers' short-term and long-term performance, volatility, excess returns over a particular period of time, and performance in up and down markets. After evaluating William Blair's performance against the new policy, the firm “no longer triggered the quantitative measures necessary to be on watch,” Ms. Miller-May wrote.