Louisiana State Employees' Retirement System, Baton Rouge, hired Blackstone Alternative Asset Management and Pacific Investment Management Co. to run global multisector fixed-income portfolios of $200 million each, said recently released board meeting minutes.
The $11.5 billion pension fund conducted a shortlist search after increasing the target allocation to global multisector fixed income to 7% from 4% earlier this year following an asset allocation review.
Other changes made at the time were increases in targets to private equity to 15% from 14%, and emerging markets debt to 3% from 2%. Target allocations the pension fund reduced were domestic large-cap equities, to 13% from 14%; absolute return to 7% from 8%; domestic small-cap equities to 6% from 7%; and core fixed income and domestic high-yield fixed income to 3% each from 4% each.
Targets that remained unchanged were 15% international large-cap equities; 12% emerging markets equities; 7% risk parity; 5% international small-cap equities; and 4% domestic midcap equities.
In May, Robert W. Beale, chief investment officer, said the changes would not result in any manager terminations.
As of March 31, LASERS' actual allocation was 15.3% international small-cap equities, 14% each domestic large-cap equities and emerging markets equities, 12.9% private equity, 7% domestic small-cap equities, 6.8% risk parity, 6.5% absolute return, 5.7% international small-cap equities, 4% each domestic midcap equities and global multisector fixed income, 3.8% high yield fixed income, 3.5% core fixed income, 1.9% emerging markets debt and 0.6% cash equivalents.
Investment consultant NEPC assisted.
Mr. Beale did not respond to requests for further information.