Hey there! Just wanted to remind you about something important that happened on February 27th, 2024. The Due Diligence process went behind closed doors. Isn't that intriguing? I'm curious about what might have happened during that time. Do you have any idea?

 

The meeting began at approximately 9:50 am with public participation.

The trustees present are Jeffery Blackwell, Jacquelyn Price-Ward, Mary Sharon Reilly, Lois Nelson, Paula S. Barajas, Victor Ochoa, Tammie F. Vinson, Quentin S. Washington, Maria Rodriquez, and Tanya D. Woods.

Members of the Hospitality Workers Union, United Here Local 11 from Southern California presented their request to the Board. They asked that the Board send a letter in support of their labor demands. To hear public comments from the Hospitality staff and organizers urging Chicago Teachers’ Pension Fund’s Trustees to help them in their fight for better working conditions, watch the first 3 minutes from the start of the meeting.

Members of the Pension Advocacy Group spoke second. They are requesting that the Board restore the Communication Committee and that the trustees be at the helm of communication. Their concern is that not enough is being done to promote Define Benefits for all members. To hear public comments from the PAG organizers who spoke about their fight for better communication conditions, watch the video from about 6 minutes into the meeting.

Trustees moved into executive session approximately 40 minutes into the start of the meeting which lasted approximately over 1.5 hours. This action has raised concerns among members of the Pension Advocacy Group, who feel that the due diligence of investment managers by trustees should be conducted in an open, transparent, and accessible public meeting.

The purpose of going into executive session was stated to be, Section 2(c)(7) of the Open Meetings Act.

(7) The sale or purchase of securities, investments,

or investment contracts. This exception shall not apply to the investment of assets or income of funds deposited into the Illinois Prepaid Tuition Trust Fund.

 

This is not applicable.

The gradual erosion of trustee power has been witnessed, as the due diligence process moved from being held during the public monthly Board of Trustee meetings to Investment committee meetings, First Friday meetings, and now behind closed doors. The first time the trustees took investment due diligence behind closed doors occurred on January 18, 2024, at the Board of Trustee monthly meeting.

The Pension Advocacy Group needs to see evidence that investment managers are engaged in a fair and open process for the coveted position of managing the hard-earned retirement money of the members of CTPF. They want to hear questions from trustees, consultants, and investment staff, Allow the members and watchdog groups analyze the data presented and conclude whether members are being served by the best of the best teams. Investment Managers’ performance formal reviews by the Board are in our Statute, Bylaws, and Policy. See below:

II.A.505  Meetings Open to Public.  Board meetings and Committee meetings shall be open to the public in accordance with the Open Meetings Act. Pursuant to section 5 ILCS 120/1.05 of the Illinois Open Meetings Act, the Chief Legal Officer is designated as the Board’s Open Meetings Act designee.

TITLE II: PENSION BOARD  CHAPTER A: BYLAWS

II.A.504  Investment Manager Due Diligence Meetings. The Investment Committee will conduct due diligence meetings for every investment manager approximately every 24 months to be scheduled for Investment Committee meetings or for First Friday meetings in February, May, and November. Additional First Friday meetings may also be used for due diligence reviews. Upon approval by the Board of Trustees at a Regular Board meeting, due diligence presentations may also be scheduled for a later Regular Board meeting. The Board of Trustees will review investment managers on a watch list during the Investment Committee portion of a regular Board meeting. (This language was added after the recommendation of the CTPF’s Chief Investment officer and other Board advisors)

Investment Policy Statement

Section I. Purpose

Due diligence and monitoring of the investment managers are critical elements integral to safeguarding the Fund’s assets.

Section II: Roles and Responsibilities 

The Board recognizes that even though the Fund’s investments are subject to short-term volatility, the Board intends to maintain a long-term investment focus. This prevents ad-hoc revisions to the Fund’s investment philosophy and policies in reaction to either speculation or short-term market fluctuations. In order to preserve this long-term view, the Board has adopted the following formal review schedule: