Chicago Municipal Employees’ Annuity and Benefit Fund will invest $380 million in an S&P 500 index fund managed by Northern Trust Global Investments. Partial funding comes from terminating Chicago Asset Management, which handled $200 million in active domestic large-cap value equities, and Weiss Peck & Greer, which managed $60 million in active domestic large-cap core equities. The remaining $120 million will come from reducing an S&P 500 index fund managed by Deutsche Bank, leaving it with $500 million.
The $6 billion plan made the shifts to equalize its value, growth and core domestic large-cap equity investments, according to Terrance Stefanski, executive director.
Also, the board voted to make commitments to five alternative investment funds: $40 million to Capri Capital Advisors Apartment Fund III; $25 million, Midwest Mezzanine Fund; $18 million, Mesirow Partnership II; $18 million, Mesirow Capital Partners VIII; and $25 million, First Analysis Private Equity Fund IV. Funding will come from investment income, Mr. Stefanski said.
All of the changes are the result of an asset-liability study begun in the first quarter of 2000.
