Chicago Public School Teachers' Pension & Retirement Fund rejected a proposal to hire Benchmark Financial Services to conduct a conflicts-of-interest audit of the plan's general investment consultant, Mercer Investment Consulting, said Kevin Huber, CFO and acting executive director. Trustees of the $10.3 billion fund didn't give a reason for rejecting the proposal, Mr. Huber said, and they took no position on whether they will consider an audit in the future.
Separately, the board also reallocated the $130 million in core fixed-income run by MDL Capital Management, adding $75 million to a core bond portfolio run by Taplin Canida & Habacht and $55 million to one run by LM Capital, Mr. Huber said. Taplin Canida now handles $120 million for the fund, and LM, $70 million. Mr. Huber said the board made the moves because of better opportunities with the latter two managers. MDL remains a manager, although it doesn't have any of the fund's assets, Mr. Huber said. Trustees didn't take a position on when MDL may receive funding again, he added. Mercer Investment Consultingassisted.
The board also hired Capri Advisors and DV Realty, both minorityowned real-estate managers, to handle $25 million each in diversified real estate, pending contract negotiations, Mr. Huber said. Funding will come from reallocations from existing mangers that are above their allocation targets, he added. Townsend Group, the fund's real-estate consultant, assisted.