Chicago Policemen's Annuity & Benefit Fund finalized the hire of Acadian Asset Management to run $120 million, or 3% of plan assets, in active international small-cap equity, said Samuel Kunz, chief investment officer of the $3 billion pension fund, in an e-mail.
Approval came during the board of trustees' Thursday meeting.
Other finalists in the search were AQR Capital Management, Franklin Resources and Kabouter Management.
Mr. Kunz said funding for the hire will come from the fund's international equity assets, but said details still need to be determined.
Trustees also lowered the pension fund's return assumption to 7.75% from 8% “because of changes in long-term return on assets estimates,” Mr. Kunz wrote.