Chicago Public School Teachers' Pension & Retirement Fund hired State Street Global Advisors to manage $400 million in an index fund that tracks the Bloomberg Barclays U.S. Aggregate Bond index, said Angela Miller-May, chief investment officer, in an email.
Funding will come from the termination of a Northern Trust Asset Management index fund that tracks the Barclays Capital U.S. Government/Credit Bond index. Northern Trust currently manages about $948 million in the strategy. The remaining assets will be transferred to the winner of an ongoing active core fixed-income search and rebalancing elsewhere in the portfolio or payment of monthly pension benefits, Ms. Miller-May said.
An RFI for passive core-fixed income managers was issued in January as part of the $9.8 billion pension fund's move to diversify its fixed-income portfolio.
Investment consultant Callan assisted.
As of June 30, the pension fund had a 19% allocation to fixed income and a 23% target.