Searches and Hires

Chicago police fund to launch first search for emerging markets debt

Chicago Policemen's Annuity & Benefit Fund will launch a search on May 1 for its first active local currency emerging markets debt manager to run $50 million, said Aoifinn Devitt, chief investment officer, in an email.

The $2.7 billion pension fund will issue the RFP for the new manager within its fixed-income asset class, which has a target of 22%. Funding will come from reductions of $25 million from existing fixed-income managers and $25 million from existing emerging markets equity managers. No managers will be terminated.

Investment consultant NEPC is assisting.

The RFP will be posted on the pension fund's website and also the NEPC website. Ms. Devitt said the RFP will be open the entire month of May and a decision is expected in August or later.

Separately, the pension fund named Acadian Asset Management, BMO Global Asset Management, ClariVest Asset Management and Federated Investors (FII) as finalists in the pension fund's search for U.S. or global microcap equity managers to run $50 million. Finalist presentations will take place at the pension fund's June 25 investment committee meeting, with a decision expected shortly thereafter.

The pension fund issued an RFP in March for its first dedicated investment to the asset class.

The pension fund also made a follow-on commitment of $10 million to a real estate debt strategy managed by Sound Mark Partners. The pension fund originally committed $10 million in September 2017. The additional amount is because the pension fund's real estate allocation is 2.2% compared to its 7% target.