Chicago Policemen’s Annuity & Benefit Fund will issue an RFI within the next few weeks for a firm to conduct a fiduciary and governance review of the investment operations of the $3.2 billion fund, confirmed Samuel Kunz, chief investment officer, in an interview.
The fund’s trustees voted at their June 23 investment committee meeting to authorize Mr. Kunz to take a look at the array of firms qualified to conduct an audit of the fund’s investment processes. Depending on what the initial research shows, Mr. Kunz said, a formal RFP may be authorized later this year.
In other news, Mr. Kunz said a presentation of the results of a now-closed search for global tactical asset allocation managers was postponed until the July 25 investment committee meeting, pending receipt of more information requested by trustees. The fund initiated a search in April for one or more GTAA managers to manage 10% of the fund, about $300 million. Mr. Kunz said managers could be selected at the Aug. 22 investment committee meeting.
Finally, Mr. Kunz said he has begun preliminary research on developing a sophisticated risk management system for the fund. Neither an RFI nor an RFP are imminent, but Mr. Kunz said he is talking with risk system providers and other pension fund CIOs about best practices and products to get a sense of what’s available.