Chicago Transit Authority Employees Retirement System will search for managers for a new stable value allocation and an additional private equity allocation as part of an overhaul of investment policy, said John Kallianis, executive director. The $1.9 billion systems investment committee will move quickly to find managers, he said, although a timetable has not been set.
The system is adding stable value as an asset class, allocating 10% of total assets, which eventually will increase to 23%. Funding likely will come from decreasing domestic equity to 46% of total assets from the current 67% in the next one to two years. The system plans to boost private equities to 6% from 4% of total assets over the same period.
The system also will reduce its fixed-income allocation to 10% from 15% and drop its 1.5% international bond allocation. Mr. Kallianis declined to name the sole international bond manager handling the portfolio. It will decrease international equities to 5% from 8% of total assets.
The system also doubled its real estate allocation to 10% of assets and hired Prudential, RREEF and J.P. Morgan to run $22.2 million each in core real estate. The source of funding was not identified.