Louisiana State Employees moves into emerging markets debt

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.

Other finalists were Mondrian, Investec Asset Management and Pictet Asset Management.

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.