Louisiana State Employees Retirement System, Baton Rouge, plans to search for a merger arbitrage manager for a $250 million mandate, and for domestic large-cap growth, large-cap value, small-cap value and tactical asset allocation managers in the next few weeks. Robert Borden, chief investment officer, wouldnt say how big the mandates would be.
In addition, the $5.7 billion fund will allocate 5% of assets to an internally managed midcap index fund, said Mr. Borden.
The changes are the result of an asset allocation study.
The funds allocation to domestic large-cap stocks will be reduced to 28% from 34%, and global fixed income will be cut to 5% of assets from 10%.
Searches for international large-cap growth and domestic small-cap managers are nearing completion, Mr. Borden said. Each will manage $250 million. He declined to say if any existing managers would be released.
New England Pension Consultants assisted.