The Louisiana District Attorneys Retirement System, Baton Rouge, may issue an RFP after its Nov. 8 meeting for a manager to run $10 million in either venture capital or real estate, said Ed Ware, chairman of the board of the $190 million pension plan.
Funding would likely come from cash or from reducing the fund's $135 million passive equity portfolio and $50 million fixed-income portfolio, said John Vann, a consultant with Rushmore Investment Advisors, which assists the plan. The passive equity allocation is composed of 10 ETFs, all run by Russell Investment Group. The fixed-income allocation comprises $25 million in a Lehman Aggregate ETF, also run by Russell, and a $25 million active domestic fixed-income portfolio run by Dorsey & Co. Some of the fixed-income money will also be moved to a Lehman 1- to 3-Year Treasury Bond ETF and a Lehman 7- to 10-Year Treasury Bond ETF, both managed by Russell; further details haven't been decided. Fund officials are making the changes to reduce volatility and enhance returns, Mr. Vann said.
The fund has $1 million in venture capital and $4 million in cash.