CHICAGO, Jan. 6, 2015 /PRNewswire/ -- As part of two fiscal year-end reports, the Chicago Teachers' Pension Fund (CTPF) today announced that it invested more than $3.6 billion in assets or approximately one-third of total fund assets with Minority, Women and Disadvantaged Business Enterprise (MWDBE) firms, a 2 percent increase over fiscal year 2013 investments. The fund's work was highlighted during October testimony at an Illinois Senate Committee hearing on Pensions and Investments and in a December report provided to the Illinois Governor's office.
"Our pension fund has a longstanding commitment to a diverse investment base and has recognized the benefits of investing with MWDBE owned funds since the early 1990s," said Jay C. Rehak, president of the Chicago Teachers' Pension Fund Board of Trustees. "Our MWDBE program has been instrumental in our long-term success. We believe diversity of managers makes fiscal sense in a global market."
The recently submitted reports are 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, 2014, includes $1.44 billion managed by women-owned firms; $1.29 billion managed by African American-owned firms; $823.7 million managed by Latino-owned firms; $54.2 million managed by Asian American-owned firms; and $10.8 million managed by Persons with a Disability-owned firms.
Over the past twenty years, CTPF has seen dramatic growth in MWDBE investments. The fund invested 6% of assets in MWDBE-owned funds in 1993. Today the total investment has grown to 33.4%.
"We look forward to continuing our partnership with the more than 40 MWDBE-owned firms and continuing to invest in these productive relationships," said Rehak.
CTPF invests in emerging managers through direct mandates and a Manager-of-Managers program (MoMs). Currently the fund has direct relationships with 24 MWDBE firms who manage 33 portfolios. The fund has a MoMs relationship with an additional 22 firms who manage 28 portfolios. Managers who perform well under the MoMs program graduate to direct mandates with the fund. Since the program's inception, six firms have graduated.
A copy of CTPF's 2014 Diversity report is available at www.ctpf.org.
Established by the Illinois state legislature in 1895, the Chicago Teachers' Pension Fund manages members' assets and administers benefits. The $10.9 billion pension fund serves more than 63,000 active and retired educators, and provides pension and health insurance benefits to 27,700 beneficiaries.
SOURCE Chicago Teachers' Pension Fund (CTPF)