Chicago Park Employees Annuity & Benefit Fund will search for private equity and real estate managers over the next six to eight weeks as it implements a new asset allocation. The $570 million plan will allocate 5% of total assets in private equity, its first investment in the asset class, said Joseph Fratto, executive director. The real estate allocation rose to 10% from 5%, and the new manager will probably be for equity real estate.
Fund officials also raised the plans non-U.S. equity allocation to 12% from 7%. The plans current non-U.S. stock manager is Wellington; additional managers may be sought later, Mr. Fratto said.
The plans domestic equity allocation was cut to 38% from 43%, and fixed income was reduced to 35% from 45%. Consultant Ennis Knupp, which conducted the review, will handle the manager searches.
Separately, trustees decided not to invest in hedge funds, Mr. Fratto said.