Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. SEARCHES AND HIRES
January 03, 2017 12:00 AM

Chicago Teachers explores search for passive core fixed-income managers

Barry B. Burr
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Chicago Public School Teachers' Pension & Retirement Fund issued an RFI for managers to run up to $400 million total in passive core fixed income, Angela Miller-May, director of investments, said in an interview.The search is part of a move by the $10.2 billion pension fund to diversify its $2.3 billion fixed-income allocation, including reducing the $984.8 million managed by Northern Trust Asset Management in an index fund that tracks the Barclays Capital U.S. Government/Credit Bond index.

    The board cut its target allocation to passive fixed income to 20% from 50%, while also changing its passive benchmark to the Bloomberg Barclays U.S. Aggregate Bond index, Ms. Miller-May said. Northern Trust manages 48% of the pension fund's fixed-income allocation.

    The changes are part of an overall new fixed-income asset allocation. Under it, the other allocation changes raise core-plus and core active to 40% each of the fixed-income portfolio, from 30% and 20%, respectively. The new allocation will result in “adding to return without adding to risk,” Ms. Miller-May said.

    “The RFI was issued to obtain more information before we embark on a full-scale RFP,” Ms. Miller-May said in a follow-up e-mail. “The thought was that there are only a limited amount of providers, and the differences between returns and fees would be minimal. However, we wanted the opportunity to make a well-informed decision on whether we needed to issue an RFP or whether it would be more prudent to take other actions.”

    The board changed the passive benchmark to the aggregate index to broaden exposure in the fixed-income market, Ms. Miller-May said in the interview.

    As part of the allocation changes, the board plans to increase funding to the new allocation levels to its core active managers — Pugh Capital Management, which manages $175 million; Taplin Canida & Habacht, $125.8 million; and Garcia Hamilton & Associates, $107.3 million — and its core-plus managers — Western Asset Management, $427.5 million; and LM Capital Group, $218.3 million.

    Funding for the changes will come from rebalancing among fixed-income managers, including Northern Trust, Ms. Miller-May said in the interview. Under the new core-plus allocation, Western Asset Management and LM Capital would maintain their proportionate share of the assets they now have, while Pugh Capital, Taplin Canida and Garcia Hamilton would be equally weighted under the new core-active allocation. The new allocations are subject to due diligence the pension fund's board is undertaking on each manager, Ms. Miller-May said. The board expects to carry out the rebalancing and fund the existing managers by April.

    The core passive RFI is available at the pension fund's website. Proposals are due Jan. 27. The board plans to review the RFI responses on Feb. 16 and discuss possible action, including issuing an RFP for a passive core fixed-income manager.

    Callan Associates, the pension fund's investment consultant, is assisting in the search.

    Related Articles
    Chicago Teachers Union deal with board will ax pension pickup for new employees
    Illinois governor vetoes funding bill for Chicago teachers pension fund
    Chicago pension reform bills stall as state Legislature adjourns; lame-duck vot…
    University of Chicago endowment posts 1.9% loss in latest fiscal year
    Chicago teachers plan eyes buyout search, commits $90 million to 5 managers
    Chicago teachers plan preps further real estate searches, commits to GreenOak
    CEO needs some help with his homework
    Recommended for You
    McNeely_Doug_i.jpg
    Carlyle hires BlackRock's McNeely to work with big clients
    Kelloggs_Building_i.jpg
    Former 401(k) participant sues Kellogg over ERISA mismanagement
    Lawyer_Writing_In_Court_i.jpg
    Cook Group sued over alleged ERISA violations in 401(k) plan
    A Good Time for Trend Following
    Sponsored Content: A Good Time for Trend Following

    Reader Poll

    June 6, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Nearing the finish line: Ideas on end-state investing for corporate DB plans
    The Meaning of "Portfolio Intelligence"
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Crossroads: Politics, Inflation, & Bonds
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    June 20, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit