Chicago Municipal Employees' Annuity and Benefit Fund hired Acadian Asset Management and Kayne Anderson Rudnick to run about $75 million each in active international small-cap equities.
The $3.4 billion pension fund's board approved the hirings at its meeting Thursday, said Steve Yoon, investment officer. They are pending successful contract negotiations, he noted.
The pension fund issued an RFP in September to increase its exposure to international small-cap equities and move to active management from passive management.
Partial funding came from a $50 million passive international small-cap equity portfolio managed by Northern Trust Asset Management; the firm was eligible to rebid but did not, Mr. Yoon said. Funding for the remainder of the portfolio has yet to be determined, he said.
Strategic Global Advisors and William Blair & Co. were the other finalists.
As of Sept. 30, the pension fund's actual allocation to international equities was 18%.
Investment consultant Marquette Associates assisted.