Chicago Policemen's Annuity & Benefit Fund hired six real estate managers to manage a total of $80 million, or about 2% of plan assets, as part of the $4 billion fund's maiden allocation to the asset class, said John J. Gallagher Jr., executive director. The fund allocated about $13 million each to core real estate managers Morgan Stanley, UBS Global and Quadrant Real Estate Advisors. It allocated $13 million and $15 million, respectively, to opportunistic managers Angelo Gordon and the Davis Group. The fund also allocated $13 million to Alex. Brown Realty's value real estate commingled fund, ABR Chesapeake III. Real estate consultant Courtland Partners assisted.
The plan's target real estate allocation is 5% of assets. Mr. Gallagher said the plan and its consultant will be looking at additional real estate managers in 2007, and fund officials expect to end the year with a total of $120 million invested. Additionally, Mr. Gallagher said staff and trustees are considering an initial investment in an infrastructure fund this year, although the size of the allocation and the timing of a possible search have not been set.