Louisiana State Employees' Retirement System, Baton Rouge, hired Stone Harbor Investment Partners to manage $180 million in active emerging markets debt, confirmed Bobby Beale, the pension fund's chief investment officer, in an e-mail.
It is the $8.8 billion pension fund's first emerging markets debt investment.
Funding comes from reducing Mondrian Investment Partners' global fixed-income allocation. As of June 30, Mondrian Investment ran $413 million in global fixed income for the pension fund.
The pension fund's target allocations to emerging markets debt and global fixed income are 2% each. The actual allocation to global fixed income is 5%.
Investment consultant NEPC assisted.