Louisiana Sheriffs' Pension and Relief Fund, Baton Rouge, committed $50 million to a Russell Investment commingled real estate equity fund, a new asset class, said Osey McGee, executive director. Trustees at the $1 billion plan made the move because of concern about future equity and fixed-income performance, Mr. McGee said. Funding came from reducing the plan's stock and bond targets by 2.5% each, the result of an asset allocation study, he said. The new targets are 50% equity; 42.5% fixed income; 5% real estate; and 2.5% other. Russell Investment Group is the plan's consultant.
Separately, the plan named Ark Asset, Eagle Asset, Turner Investment and Winslow Asset as finalists in a shortlist search for an active domestic large-cap value equity manager, Mr. McGee said. The portfolio size and funding source have not been determined. Currently, Atlanta Capital and Dresdner RCM each runs $75 million in similar portfolios; trustees decided the plan may have grown enough to warrant three managers in that style, he said. Investment committee members will interview the finalists on June 30; a selection is expected when the full board hears the committee's recommendation at their August meeting. Russell is assisting.