Chicago Art Institute foundation restructuring completed

Art Institute of Chicago completed the restructuring of its $605 million foundation with the assistance of Cambridge Associates. The current asset allocation targets are 32.5% domestic equity, 25% fixed income, 15% international equity, 10% hedge funds, 6% in inflation hedges, 6.5% in opportunistic investments and 5% in non-marketable alternative investments, according to a statement from the institute. In fiscal 2004, the return on the overall investment portfolio was a net 17.8%, the statement said. The fund had 87% of its assets invested in hedge funds in 2001 but lost a total of $43 million that year through investment in a hedge fund managed by Integral Investment Management. In the statement, officials at the Art Institute said its 2001 lawsuit against Integral has not been settled. The Art Institute's financial situation has improved so much since 2001 that Moody's has affirmed its A1 debt rating and changed its rating outlook to stable from negative, according to a Moody's statement.