CHICAGO -- A challenger in the Feb. 23 race for Chicago city treasurer supports more use of derivatives strategies at four Chicago municipal pension funds with about $11 billion in total assets.
Dorothy Brown, who is running against incumbent Miriam Santos, said the four city fund pension boards on which the city treasurer sits could make use of the city's futures exchanges. "We want to make sure we maximize investment returns," while keeping risk to a minimum. Managed futures may do that, she said.
The city treasurer is an ex-officio board member of the Chicago Firemen's Annuity & Benefit Fund, the Chicago Laborers' Annuity & Benefit Fund, the Municipal Employees' Annuity & Benefit Fund, and the Chicago Policemen's Annuity & Benefit Fund. Some funds have looked at managed futures, but done nothing. Fund officials couldn't be reached for comment.