Chicago Public School Teachers Pension and Retirement Fund will request that its equity and fixed-income money managers divest companies tied to Sudan, even though the $12.7 billion fund is excluded from the state Sudan divestment legislation that still awaits Gov. Rod R. Blagojevichs signature.
In the spirit of supporting the states efforts to assist in eliminating the Sudan atrocities, as well as continuing to fulfill the fiduciary duties, fund officials will ask managers to buy from an independent research firm of their choice a list of forbidden investments, and to use this list to minimize forbidden entities in their portfolios, a fund report states.
Kevin Huber, executive director, said in an interview that managers will be asked to make no new investments in the companies on the list and to consider divestment of current holdings on the list if it makes sense from an investment perspective.
As for its private equity and private real estate managers, Chicago Teachers officials are requesting they make best efforts to show a substantial majority of their portfolios do not contain any entities that transact business or control property or assets in Sudan, the report said.
Mr. Huber said compliance with the request wont be a criterion for termination, but will be a reporting issue.