The $700 million Louisiana Firefighters' Retirement System, Baton Rouge, hired six managers in three asset classes, said Steven Stockstill, executive director. In active high-yield fixed income, Seix Investment Advisors will run $45 million, and Regions Morgan Keegan Trust will run $25 million. INVESCO will manage $25 million in a REIT. Both asset classes are new to the system. In active international equity, Fisher Investments, LSV Asset Management and Thornburg Investment Management will run portfolios of $50 million each.
Most of the funding will come from reducing active domestic core fixed income. Active core bond manager Hibernia, which managed $98 million, was terminated for performance reasons, Mr. Stockstill said. Loomis, Sayles, which ran $24 million in the asset class, was terminated strictly on an asset allocation basis and not for performance, he said. An additional $73 million will be trimmed from the portfolios of existing active domestic core fixed-income managers.
Additional funding will come from the performance-based termination of Bank of Ireland, which ran $20 million in active international equity, he said, and $30 million that was parked in an EAFE index fund run by Northern Trust.
Steven Thorpe, spokesman for Hibernia, and Stephen Holland, spokesman for Bank of Ireland, did not return calls seeking comment by press time.
Consulting Services Group assisted.