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