Louisiana Schools to move into 130/30

Louisiana School Employees’ Retirement System, Baton Rouge, plans to put between 3% and 5% of total assets into a 130/30 strategy, confirmed Brendan Brosnan, CIO of the $1.6 billion fund. Funding will come from reductions to fixed income and equity; he could not say which portfolios will be reduced, but no managers will be terminated. Fund officials decided to add the strategy to improve the system’s funded status, which is between 85% and 90%. Consultant Segal Advisors will conduct an invitation-only search for one or two managers, and the pension board expects to make a selection by early fall.