Municipal Employees Annuity & Benefit Fund of Chicago plans to conclude an asset allocation/asset-liability study by November that will include liability information provided by actuary Watson Wyatt. Consultant Becker Burke completed an asset allocation study for the $6.2 billion fund two years ago but did not include liability predictions due to an early retirement option being offered at the time. Fund trustees may receive information on the study as early as September, to be followed by a manager structure analysis and list of recommendations.
Currently, the fund has 31 managers and 43 separate investment portfolios. The asset mix is: 59% domestic equities; 27% fixed income; 3% international equity; 3% venture capital; 2% real estate; and 6% cash.
Trustees also interviewed Frontenac Capital, a private equity manager that already runs $40 million for the fund; Terry Stefanski, executive director for the fund, said trustees may consider allocating additional money to the firm.