The Chicago Public School Teachers' Pension & Retirement Fund will have to sell 8% to 10% of its international equities to comply with a state law prohibiting investments in companies connected with Sudan, said Kevin Huber, executive director of the $11 billion fund.
The fund has about $1.3 billion in international equities, all managed by external managers.
Mr. Huber said the fund expects to have to sell only a small percentage of its approximately $5.3 billion in domestic equities, all managed by external managers, to comply with the law. He didn't have a more specific figure.
The estimate is based on research from KLD Research & Analytics, the firm the fund recommends its managers use for Sudan screening.
Brad A. Blalock, consultant at Mercer Investment Consulting, said he couldn't say if the fund would take an investment loss in selling the equities. "We have no idea if it will be positive or negative," he said.
The fund has until June 2007 to fully comply with the law.