Chicago Municipal Employees' Annuity & Benefit Fund hired Ullico Investment Advisors to run an $80 million infrastructure portfolio, pending contract negotiations, said Steve Yoon, investment manager, in an email.
The $4.3 billion pension fund issued an RFP in August for its first infrastructure manager to provide more diversification and more yield, Mr. Yoon said at the time. Funding will likely come from reducing the allocations of two core fixed-income managers, neither of which would be terminated.
As of June 30, LM Capital Group and UBS Asset Management ran $264 million and $68 million, respectively, in active domestic core fixed income.
The other finalists were IFM Investors and J.P. Morgan Asset Management.
Investment consultant Marquette Associates assisted.