Chicago Municipal Employees fund hires Geneva Capital

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.

G4S Pension Scheme, Crawley, England, hired Cardano as fiduciary manager for about £200 million ($326 million) of the security company's £1.2 billion fund, a G4S spokeswoman confirmed.

Cardano will handle dynamic asset allocation, risk management and manager selection.

The spokeswoman declined further comment.

Greater Gwent (Torfaen) Pension Fund, Pontypool, Wales, hired Aberdeen Asset Management to run £120 million ($198 million) in active global equities, said Graeme Russell, head of employee services at the £1.35 billion fund.

Funding comes from terminating SSgA, which ran a similar-size active U.K. equities portfolio. Fund officials created the global portfolio to move more equities overseas.

Illinois State Universities Retirement System committed $40 million to Oaktree Capital Management's Public-Private Investment Program fund.

Oaktree specializes in commercial mortgage-backed securities under the Treasury Department's PPIP, said J. Fred Giertz, investment committee chairman for the $12 billion Champaign-based system.

Funding for the commitment will come from a $1.6 billion Dow Jones U.S. Total Stock Market index fund, managed by Northern Trust Investments.

Separately, the board committed $25 million to Riverside Partners Fund IV, a private equity buyout fund, said William R. Atwood, executive director. Funding will come from across the portfolio as the commitment is drawn down. Franklin Park Associates, the board's private equity consultant, assisted.

Iowa Public Employees' Retirement System, Des Moines, hired First Quadrant to manage $200 million in an active global portable alpha multiasset multistrategy, pending contract negotiations.

Information on the source of the funding wasn't immediately available. Karl Koch, chief investment officer at the $19.9 billion system, said last September the portable alpha funding could come mainly from cash rebalancing in the total fund, without terminating any managers.

Wilshire assisted.

New York State Common Retirement Fund committed $100 million to private equity firm Hudson Clean Energy Partners and $50 million to hedge fund Brevan Howard Fund, according to a monthly transaction report from the $126 billion fund.

Hudson Clean Energy Partners is part of the Albany-based fund's green strategic investment program. It is the first time New York State Common has invested with the firm. Brevan Howard is an existing manager.

The fund also invested in seven affordable housing real estate transactions valued around $18.5 million.