Chicago Public School Teachers' Pension & Retirement Fund is adding a new target allocation to private credit, increasing targets to domestic equity and fixed income, and decreasing its target to international equity.
The $10.7 billion pension fund's board approved the changes at its March 16 meeting following an asset allocation study, spokeswoman Michelle Holleman said in an email.
The changes were made to reduce risk as a response to the current interest rate environment, Ms. Holleman said. They include the creation of a new 3% target to private credit, increases to the targets to domestic equity and fixed income to 31% and 26.5%, respectively, from 30.5% and 23%, and the reduction of the target to international equity to 20.5% from 27.5%. The targets to real estate, private equity and infrastructure remain unchanged at 9%, 8% and 2%, respectively.
CIO Fernando Vinzons said in an email that the pension fund is reviewing its international equity managers, and “no decisions have been made regarding manager terminations at this time.”
As of Sept. 30, the pension fund's actual allocation was 27.2% domestic equities, 26% international equities, 20.3% fixed income, 13.4% real estate, 8.7% private equity, 2.2% infrastructure and the rest in cash.
