Chicago Public School Teachers' Pension and Retirement Fund's board voted Thursday to hire Pugh Capital Management to manage $125 million in domestic core fixed income.
The hiring is pending contact negotiations.
The $8.9 billion fund conducted the search as part of a plan to raise to 15% from 5% the allocation to emerging managers of its $1.8 billion in fixed income.
Funding for the new manager could come from an index fund, depending on the asset allocation at the time of transition. Mercer assisted in the search.