Chicago Laborers Annuity & Benefit Fund invested an additional $141 million in an S&P 500 index fund managed by Northern Trust, increasing that allocation to $200 million.
The $1.6 billion plan funded the increase by terminating active domestic large-cap growth managers ABN AMRO and Weiss Peck & Greer, which managed $60 million and $81 million, respectively. The fund wanted to reduce its exposure to the asset class and it was unhappy with the performance of these portfolios, said James Capasso Jr., executive director.
Judy Lane, a managing director at Weiss Peck & Greer, said the plans actions were "understandable based on the performance of the portfolio in the two quarters prior to termination. Officials at ABN AMRO did not respond to requests for comment by press time.
Also, the plan committed $17.5 million to the Midwest Mezzanine Fund; $8.75 million each to Mesirow Capital Partners VIII and Mesirow Partnership II; and $7.5 million to the Capri/Capital Advisors Apartment Fund II. Funding will come from reducing domestic fixed-income allocations across the board; no managers will be terminated.