City of New Orleans Employees Retirement System is selecting a manager to run $20 million in convertible bonds, the funds first investment in the asset class, said Jerome Davis, chairman of the board at the $380 million fund. Funding will come from rebalancing.
The fund also may search for a large-cap value manager and is waiting for consultant Morgan Stanley Dean Witter to provide a list of candidates and performance numbers. Then we will decide if its worthwhile to go ahead with the search, said Mr. Davis. The board may interview potential managers at its July meeting. The portfolio size hasnt been decided.