Chicago Municipal Employees' Annuity and Benefit Fund hired Geneva Capital to run $75 million in active domestic midcap growth equities, confirmed James L. Mohler, chief investment officer.
Partial funding came from the termination of TCW, which ran about $35 million in passive domestic small-cap growth equities, Mr. Mohler said. He noted that TCW's performance was good, but consultant Marquette Associates recommended the move. “Midcap growth is where we wanted to have more exposure,” Mr. Mohler said.
The rest of the funding came from rebalancing.
The $4.9 billion system plans to cut its overall investment in domestic equities over the next few years, Mr. Mohler said. As of Sept. 30, the system was invested 33% in domestic equities, 25% fixed income, 22% international equity, 10% hedged equity, 4% real estate, 4% short-term investments and 2% private equity. The system's target allocation is 25% each in domestic equity and fixed income, 20% in international equity and 10% each in hedged equity, real estate and private equity.