New Orleans City Employees Retirement System and general consultant Morgan Stanley are reviewing the plan's fixed-income managers and the asset class overall, said Jerry Davis, board chairman. The $380 million plan will likely finish the review early in the third quarter, Mr. Davis said. Even though the plan's existing fixed-income managers have "performed extremely well" over the past two or three years relative to their benchmarks, the board will possibly broaden existing mandates or look to hire additional managers to increase overall returns, he said. Deutsche Asset Management, Orleans Capital Management and EARNEST Partners each run between $21 million and $25 million in active fixed income for the retirement system.
Separately, the system will invest $1 million in the IIG Trade Opportunities hedge fund, said Mr. Davis. Funding will come from cash.