Public School Teachers Pension and Retirement Fund of Chicago restructured both its equity and fixed-income portions and hired two large-cap value equity managers. The $9.4 billion funds target equity allocation was boosted to 65% from 51%. UBS Brinson and Harris Investment Management were hired to manage approximately $280 million each, funded by reducing existing equity portfolios, including reducing a large-cap value portfolio run by Oppenheimer to $100 million. Trustees reclassified the portfolios of Waddell & Reed and New Amsterdam as large-cap core equity, changing the benchmark to the S&P 500. Waddell & Reeds large-cap core equity portfolio was reduced by $150 million to total $500 million. An S&P 500 index fund managed by Northern Trust Quantitative was reduced by $60 million to total $2.4 billion; and Fidelitys large-cap growth mandate will shrink by $120 million to $520 million. Morgan Stanley was dropped from the emerging markets roster. The assets were split evenly between existing emerging markets managers Scudder and Schroder. The change was meant to reduce managers and fees in the asset class. Morgan Stanley will continue to manage $300 million in core international equity. Trustees changed from a core active domestic bond allocation in favor of a passive approach and the use of an enhanced index portfolio and opportunistic strategies. Fee reduction and better performance was the motive for the move. An NTQA passive bond portfolio was reduced by 5% to total approximately $1.3 billion. Bank of America and Smith Grahams core active mandates were broadened to include opportunistic investments. Their portfolios were reduced by $60 million and $30 million, respectively, to help fund a higher equity allocation. BofA will manage $120 million, while Smith Graham will handle $60 million in the new mandate. A third core bond manager, Lincoln Capital, had its portfolio changed to run $536 million in an enhanced index strategy.