The $2.6 billion Chicago Policemen's Annuity & Benefit Fund plans to begin a search for a manager of traditional passive strategies this month.
The RFP is to be posted on the policemen's fund website, confirmed Thomas Beyna, board president and chairman of the investment committee of the defined benefit plan, in an email. Mr. Beyna did not provide the size of the future mandate.
The board of trustees approved the search during a Feb. 25 board meeting.
In other news from the fund, Mr. Beyna said Pacific Investment Management Co. was terminated by the board at its Jan. 28 meeting for management of $124 million in the firm's All Asset Strategies approach.
Mr. Beyna said the termination of the global tactical asset allocation strategy was part of a change in the fund's asset allocation after a review by fund consultant NEPC.
Mr. Beyna did not immediately provide more information about the results of the asset allocation review.
CPABF posted net returns of the plan as of Dec. 31 on its website that showed performance of the fund lagged that of its benchmark over shorter reporting periods. The return of the plan in the year ended Dec. 31 was 10.6% (benchmark, 11.1%); three years, 6.8% (7.8%); five years, 8.8% (9.1%); and 10 years, 7.6% (7.5%).
Multiyear returns are annualized.
