Chicago Municipal Employees’ Annuity and Benefit Fund contributed an additional $25 million each to real estate managers American Realty and AFL-CIO Building Investment Trust, confirmed Jim Mohler, chief investment officer of the $4.96 billion fund.
American Realty currently runs $12 million for the fund, and the AFL-CIO fund, $18 million, Mr. Mohler said in a telephone interview.
“We’re trying to get our allocation to real estate up higher,” Mr. Mohler said, noting that the fund plans to increase its allocation to real estate and private equity to 10% each. “This was a way of getting money invested quicker in open-end vehicles we already have relationships with.”
The fund’s target allocation to real estate is currently 6%, and private equity target is 5%. He said he does not expect to release new RFPs for either asset class until 2011.
The fund’s actual allocation is 31% domestic equity, 26% fixed income 22% international equity, 10% hedged equity, 5% real estate, 3% private equity and 3% short term.