Chicago Municipal Employees' Annuity & Benefit Trust Fund is searching for one or more emerging markets small-cap equity managers to run a total of $50 million to $100 million, confirmed Michael Walsh, chief investment officer.
It is a new allocation for the $5.1 billion pension fund, the result of an asset-liability study, Mr. Walsh wrote in an e-mail. The target for emerging markets small-cap equity is 2%.
The RFP is available on the pension fund's website.
Proposals are due at 3 p.m. CST on Dec. 13. A timetable for a decision has yet to be determined.
Mr. Walsh also wrote that an RFP will be issued in the coming months for managers for a new 5% target allocation to global fixed income, also a result of the study.
Other changes made to the portfolio stemming from the asset-liability study are: Domestic core fixed income was reduced to 12% from 20%, while private equity dropped to 5% from 10%, because of liquidity constraints faced by the pension fund.
Targets that have been increased are bank loans, to 5% from 2%; high yield, to 5% from 3%; and broad domestic equities, to 3% from 2%.
Mr. Walsh did not say whether any managers would be terminated.
Investment consultant Marquette Associates is assisting.
