Chicago Transit Authority Employees Retirement Plan allocated $105 million total to three managers.
The $1.7 billion pension fund hired Symphony Asset Management to run $35 million in a bank loan strategy. Funding could come from a stable value manager that was terminated roughly a year ago, Miguel Zarate, managing director at investment consultant Marquette Associates, told pension fund trustees at Thursday's board meeting.
The pension fund voted in October 2014 to terminate its stable value managers due to a shift in the fund's asset allocation strategy, previous meeting minutes show. Further information could not immediately be learned.
Separately, trustees voted to commit $35 million each to Prudential Capital Partners and Crescent Capital Group mezzanine debt funds. The names of the funds could not immediately be confirmed.
RFPs for bank loans, mezzanine debt and infrastructure managers were issued in January. The infrastructure search has been deferred because of a due diligence time crunch and will be addressed in the coming months, a trustee told the board.
The pension fund is also in the “process of” hiring Victory Capital Management as an emerging markets equities manager, Mr. Zarate disclosed to the board. No further details were provided. In October, the pension fund issued an RFP for active emerging markets small-cap equity managers to run about $50 million total.
The pension fund has a 17%, 10%, 5% and 3% target allocation to fixed income, private equity, infrastructure and emerging markets equity, respectively.
John Kallianis, the pension fund's executive director, could not immediately be reached for further information by press time.