Teachers Retirement System of Louisiana, Baton Rouge, selected five managers to run a total of $1.5 billion in active domestic large-cap core equities, confirmed Dan Bryant, CIO of the $14.6 billion fund.
UBS Global Asset Management will manage $370 million in large-cap core; the firm had managed $475 million in a value style.
RhumbLine Advisers will now manage $300 million in a large-cap core index fund tied to the Russell 1000. RhumbLine managed $723 million tied to the Russell 1000 Value index fund, which has been reduced by $600 million. It also managed $265 million tied to the Russell 1000 Growth index, which has now been reduced by $80 million.
The money cut from the RhumbLine accounts and UBS provided partial funding for the active domestic large-cap core hires. Additional funding came from reducing an active domestic large-cap value equity portfolio run by LSV Asset Management by $100 million, leaving it with $670 million, and terminating Deutsche Asset Management from a $240 million active domestic large-cap value equity portfolio. Fund officials are terminating DeAM because the portfolio manager is expected to retire at end of March and the firm was discontinuing his value style, Mr. Bryant said.
An RFP was issued in October. Holbein Associates assisted.