Chicago Policemen's Annuity & Benefit Fund hired Ariel Investments to manage 3% of its $2.6 billion pension fund, or about $78 million, in active U.S. smidcap value equities.
Thomas A. Beyna, board president and chairman of the defined benefit plan's investment committee, confirmed in an email that trustees selected Ariel at a meeting Dec. 18 to manage the strategy. A search for a manager began in July.
The search was prompted by the closure earlier this year of the strategy's previous manager, Chicago Equity Partners.
Mr. Beyna said the fund's allocation to U.S. smidcap equity is 6%. William Blair Investment Management continues to manage the growth portion of the smidcap portfolio, which totals $100 million, he said.
