Chicago Public School Teachers' Pension and Retirement Fund is considering raising its allocation to alternative investments to 30% from 16% and international equity to 24% from 22%, according to Kevin Huber, executive director of the $9 billion fund.
Mercer, the fund's consultant, proposed that the alternatives allocation be 10% to real estate, and 5% each to hedge funds, commodities, infrastructure and private equity, Mr. Huber said in response to an inquiry.
Moves to commodities would lead to searches for managers, Mr. Huber said. Searches also could be possible in for hedge funds and infrastructure.
The real estate allocation would be 8% in non-publicly traded funds and 2% in real estate investment trusts.
The board's current allocation targets are 6.5% real estate, 2.5% REITs, 3% private equity, 2% hedge funds and 2% infrastructure.
At the same time, the fund would cut domestic equity to 24% from 40.5%, while fixed income would rise slightly to 22% from 21.5%.
For other increases in allocations, Mr. Huber expects the board would most likely increase allocations to existing managers.
The board could make a decision on the allocation changes in August or September, Mr. Huber said. If approved, they would be implemented over two to three years.