Chicago Public School Teachers' Pension & Retirement Fund's staff and consultant will recommend in September that trustees reduce large- and small-cap domestic equities to fund commitments to midcap equities, alternative investments, real estate and core fixed income.
Commitments previously approved to the $8.4 billion fund would be met, in part, by possibly reducing large-cap portfolios managed by Fidelity and Waddell & Reed, a passive small-cap portfolio managed by Northern Trust and portfolios of active small-cap managers Ariel Capital and J&W Seligman.
No managers would be terminated.
Trustees already have committed $20 million to Woodford Gayed for active large-cap management and $20 million to MDL Capital for active core fixed income.
Trustees also have made two $178 million midcap mandates, one to Northern Trust for passive management, and one to a yet-to-be-determined active manager; and committed $268 million to unspecified alternative investments.
Real estate commitments to be funded in the rebalancing are: Blackstone, $19 million; Capital Associates, $8 million; Olympus Realty, $18 million; and Walton Street Real Estate Fund II, $18 million.
Mercer is assisting.