Louisiana Sheriffs' Pension & Relief Fund, Baton Rouge, hired Western Asset Management to run $40 million in a domestic equity enhanced index portfolio, confirmed Osey "Skip" McGee, executive director. The $1.3 billion fund conducted a shortlist search earlier this year, assisted by consultant Russell Investment Group. Fund officials are reducing a $175 million passive equity portfolio run by Mellon Capital to add diversification and to gain synthetic exposure, Mr. McGee said.
Separately, fund officials are considering increasing the plan's hedge fund allocation to 3% of total assets from 2.5%, and might also invest in other alternatives in the fiscal year that begins in July, Mr. McGee said. The fund already has 2.5%, or $32 million, invested in one hedge fund. The plan also has 5% invested in core real estate.
No additional information was available on the potential increase.