Chicago Public School Teachers' Pension & Retirement Fund is lowering its assumed rate of return to 6.75%.
The $11.1 billion pension fund's board voted Thursday to lower the rate of return from 7% based on the recommendation of actuarial consultant Gabriel Roeder Smith, said Angela Miller-May, chief investment officer.
Also, investment consultant Callan completed its asset-liability study and the pension fund will not change its current targets, Ms. Miller-May said.
As of July 31, the pension fund's actual allocation was: 29.8% domestic equities; 29.1% global equities; 27% fixed income & cash; 8.3% real estate; 4% private equity and 1.8% infrastructure.
The target allocation is: 30.5% each, domestic equities and global equities; 23% fixed income; 9% real estate; 5% private equity; and 2% infrastructure.