Louisiana State Employees’ Retirement System, Baton Rouge, terminated Wells Capital Management, which ran $220 million in active domestic large-cap growth equities, confirmed Bobby Beale, chief investment officer.
The $9.3 billion retirement system moved the money into an internally managed S&P 500 index fund.
The move was the result of a restructuring of the domestic large-cap equity area following an asset class review, Mr. Beale wrote in an e-mail.
Investment consultant NEPC assisted.
Separately, the consultant also completed an asset-liability study, which the system performs every three to five years, Mr. Beale wrote. There were no changes to the system’s allocation, he added.
The system’s actual asset allocation as of Sept. 30 was 14% domestic large-cap equities, 13% private equity, 12% international large-cap equities, 10% absolute return, 8% emerging markets equities, 7% each domestic small-cap equities and mortgage fixed income, 6% each high-yield fixed income and risk parity, 5% global fixed income, 4% each domestic midcap equities and core fixed income, 2% international small-cap equities, and 1% each real assets and cash equivalents.
The system’s target allocation as of Sept. 30 was 15% domestic large-cap equities; 13% international large-cap equities; 12% private equity; 10% absolute return; 8% each emerging markets equities and domestic small-cap equities; 6% mortgage fixed income; 5% each high-yield fixed income, risk parity, and global fixed income; 4% each domestic midcap equities and core fixed income, 3% real assets and 2% international small-cap equities.