The Illinois Legislature on Dec. 2 will consider a bill that would allow the Chicago Board of Education to skip its annual contribution to the Public School Teachers' Pension & Retirement Fund of Chicago if the funded ratio reaches 90%, which it is expected to do this year. As of 1996, the fund was at 83.5%.
The bill, being considered in a special legislative session, would allow use of the money withheld from the city teachers' fund, along with money from ``sin taxes,'' to fund schools.
The $8.2 billion fund will lose $380 million in contributions over 10 years if the bill becomes law, according to an actuarial analysis. The fund's board of trustees opposes the proposal.
Washington State Investment Board, Olympia, allocated money to two U.S. real estate managers and is considering investing in international real estate.
TA Associates was allocated an additional $200 million for U.S. industrial and suburban office properties, bringing its total portfolio to $400 million. Hearthstone Homebuilding Investors was hired to manage $50 million in residential real estate. Both will be funded from cash. Pension Consulting Alliance assisted.
Staff likely will do due diligence on international real estate, a new asset class for the fund, in the next few months, said James Parker, executive director for the $40 billion fund.
The fund also renewed Barclays Global's contract to manage $4.7 billion in passive U.S. equities.
Orange County Employees' Retirement System, Santa Ana, Calif., plans to add small-cap value stocks as a new asset class next year, said Ray Fleming, retirement administrator. He said the amount and source of funding have not yet been identified.
The $3.6 billion fund's consultant, Callan Associates, is expected to direct a search in 1998.
United Asset Management is acquiring 49% of Integra Capital Management, a Canadian manager of managers. Terms were not disclosed.
Integra currently works with two firms, Lincluden Management and Gryphon Investment Counsel, which manage Integra's $3.9 billion in assets on a 50/50 basis. UAM bought 49% of Lincluden in July.
The owners of Integra currently are the firm's principals as well as Lincluden and Gryphon. UAM executives won't say whose ownership is being purchased
