The Chicago Teachers’ Pension Fund (CTPF) today announced that it
invested $4.0 billion, more than one-third of total fund assets,
with Minority, Women and Disabled-Owned Business Enterprise
(MWDBE) firms. The Fund’s work was highlighted during October
testimony presented to legislators at an Illinois Senate
Committee hearing on Pensions and Investments.
“Since the early 1990s, CTPF has been at the forefront of pension
and retirement systems throughout the United States, ensuring
that investment firms owned by minorities, women, and persons
with disabilities have access to the many opportunities to
conduct business with the Fund,” said Jay C. Rehak, President of
the Chicago Teachers’ Pension Fund Board of Trustees. “This
philosophy has become a part of our organizational culture, and
we appreciate the opportunity to highlight our achievements in
the diversity report.”
The recently submitted report is required by a 2009 Illinois law,
PA 96-006, encouraging the trustees of public pension funds to
use emerging investment managers in managing their system’s
assets. The law also encourages funds to take affirmative steps
to remove any barriers to the full participation of emerging
investment managers in investment opportunities.
A breakdown of assets by status as of June 30, 2017, includes
$1.99 billion managed by Woman-owned firms; $1.37 billion managed
by African American-owned firms; $439.3 million managed by
Latino-owned firms; $183.4 million managed by Asian
American-owned firms; $27.9 million managed by Persons with a
Disability-owned firms, and $17.5 million managed by Multiple
Minority-owned firms.
CTPF has seen dramatic growth in MWDBE investments since 1993
when it initiated its program. The Fund invested less than 6% of
assets in MWDBE-owned funds in 1993, and today the total
investment has grown to 38.4%. Since 2007, the Fund has exceeded
the goal of investing 20% of Fund assets with MWDBE firms.
“We look forward to continuing our productive partnership with
the more than 52 MWDBE-owned firms who manage 59 portfolios for
the Fund,” said President Rehak.
CTPF invests in emerging managers through direct mandates and
Manager-of-Managers programs (MoMs). Currently the Fund has
direct relationships with 26 MWDBE firms who manage 53
portfolios. The Fund has MoMs relationships with an additional 15
MWDBE firms who manage 19 investment portfolios. Managers who
perform well under the MoMs program may graduate to direct
mandates with the Fund. Since the program’s inception, eight
firms have graduated to direct mandates.
Download CTPF’s .