Public School Teachers' Pension & Retirement Fund of Chicago committed $30 million each to two real estate managers. Allegis Realty will run a separate account for the fund, and SSR Realty will run the money in its MetLife Tower Fund. Assets come from cash. The hires will bring the $7.3 billion fund closer to its 5% real estate target. The board also heard presentations from REIT managers CRA Real Estate Securities and Morgan Stanley. An allocation to REITs will be discussed at the June meeting, as will venture capital.
Separately, the board terminated Schroder Capital Management for a $133 million international equity portfolio because of lagging performance. Schroder officials did not return calls. Schroder will continue to manage $34.5 million in emerging markets equities. Schroder's international assets will be split between Scudder, Stevens and Morgan Stanley. Part of the money also will fund a 5% increase in emerging markets, split between Scudder and Schroder.
Ash Grove Cement Co., Overland Park, Kan., hired Investment Advisers Inc. to run an international equities portfolio for its $100 million pension fund, said Robert Sunderland, member of the pension committee. IAI will be assigned 5% of the total fund. Assets came from an in-house portfolio.
Tucson Supplemental Retirement System hired Hewitt Associates as a consultant to perform an asset-liability study and subsequent manager searches.
The study will begin in mid-September, after officials have had a chance to review the end-of-the-year financial report and the $332 million fund's actuarial information, said Mike Parisi, treasury administrator. He expects Hewitt to finish the review by the end of the year, with any manager searches being done at the beginning of 1998.