Louisiana State Employees’ Retirement System, Baton Rouge, is searching for a manager to run $250 million in active core mortgage-backed securities, confirmed Bobby Beale, chief investment officer at the $8 billion system.
The successful candidate will succeed TCW Group, which was terminated in early March after the departure of key portfolio managers, including Jeffrey Gundlach, fixed-income CIO, from the firm in late 2009 to launch DoubleLine Capital, Mr. Beale said in an e-mail response to questions.
Mr. Beale wrote that TCW was also terminated from a $230 million opportunistic MBS portfolio. Funds for both the core and opportunistic portfolios have been managed by J.P. Morgan since TCW’s termination. LASERS staff and the system’s general consultant, NEPC, will conduct a shortlist search to find a new opportunistic mortgage portfolio manager, he wrote.
“The new team at TCW, although it has managed mortgages as part of a broader fixed-income portfolio, has not managed a ‘mortgage-specific’ portfolio, thus the move to J.P. Morgan,” Mr. Beale wrote in the e-mail.
Copies of the core MBS RFP are available on NEPC’s website at http://nepc.com/investment/advertised_searches.php. Proposals are due May 3. Rhett Humphreys, a partner at NEPC and consultant to the pension fund, said in a telephone interview that a selection is expected in late summer or early fall.