Louisiana School Employees' Retirement System, Baton Rouge, might search for emerging markets debt and high-yield managers in 2015, said Christopher Saik, chief investment officer.
Officials at the $1.8 billion pension fund are looking into potentially further diversifying the fixed-income portfolio, which currently has about $378 million, or 21% of total assets, solely in core, core-plus and global bond strategies, Mr. Saik said.
At the pension fund's investment committee meeting on Monday, he and investment consultant Segal Rogerscasey discussed adding emerging markets debt, high yield and Treasury inflation-protected securities, Mr. Saik said. Any investment in TIPS would be an index fund and there would be no manager search, he added.
The earliest any recommendation would be made to the board to further diversify the fixed-income portfolio would be at its Dec. 1-2 board meeting.
Separately, the pension fund placed about $83 million in a Mellon Capital Management EAFE index fund, Mr. Saik said. The assets come from active manager Thornburg Investment Management, which was terminated for performance at the pension fund's Sept. 22 investment committee meeting.
Whether the assets will remain in the index fund on a permanent or temporary basis has yet to be decided, he said.